Latest news with #HamiltonLaneIncorporated
Yahoo
7 days ago
- Business
- Yahoo
Hamilton Lane Incorporated Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
A week ago, Hamilton Lane Incorporated (NASDAQ:HLNE) came out with a strong set of yearly numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of US$713m arriving 4.2% ahead of forecasts. Statutory earnings per share (EPS) were US$5.41, 8.2% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Taking into account the latest results, Hamilton Lane's five analysts currently expect revenues in 2026 to be US$717.6m, approximately in line with the last 12 months. Statutory earnings per share are expected to fall 13% to US$4.59 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$696.3m and earnings per share (EPS) of US$5.24 in 2026. While next year's revenue estimates increased, there was also a real cut to EPS expectations, suggesting the consensus has a bit of a mixed view of these results. View our latest analysis for Hamilton Lane The consensus price target was unchanged at US$154, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Hamilton Lane, with the most bullish analyst valuing it at US$162 and the most bearish at US$139 per share. This is a very narrow spread of estimates, implying either that Hamilton Lane is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Hamilton Lane's revenue growth is expected to slow, with the forecast 0.7% annualised growth rate until the end of 2026 being well below the historical 19% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that Hamilton Lane is also expected to grow slower than other industry participants. The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hamilton Lane. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. With that in mind, we wouldn't be too quick to come to a conclusion on Hamilton Lane. Long-term earnings power is much more important than next year's profits. We have forecasts for Hamilton Lane going out to 2028, and you can see them free on our platform here. You can also view our analysis of Hamilton Lane's balance sheet, and whether we think Hamilton Lane is carrying too much debt, for free on our platform here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
31-01-2025
- Business
- Yahoo
Should You Hold Hamilton Lane Incorporated (HLNE)?
Polen Capital, an investment management company, released its 'Polen US SMID Company Growth Strategy' fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. SMID cap stocks initially rose by more than 10% following November's U.S. Presidential election, in another volatile quarter. However, they relinquished nearly all of those gains in December, as the U.S. Federal Reserve signaled that interest rate cuts would occur more slowly than anticipated, with reductions expected to start in 2025. Against this backdrop, the fund returned 3.0% gross, and 2.7% net of fees compared to the Russell 2500 Growth Index return of 2.4%. In addition, you can check the fund's top 5 holdings to find out its best picks for 2024. Polen US SMID Company Growth Strategy highlighted stocks like Hamilton Lane Incorporated (NASDAQ:HLNE), in the fourth quarter 2024 investor letter. Hamilton Lane Incorporated (NASDAQ:HLNE) is a private equity and venture capital firm. The one-month return of Hamilton Lane Incorporated (NASDAQ:HLNE) was 6.12%, and its shares gained 33.15% of their value over the last 52 weeks. On January 30, 2024, Hamilton Lane Incorporated (NASDAQ:HLNE) stock closed at $159.46 per share with a market capitalization of $8.884 billion. Polen US SMID Company Growth Strategy stated the following regarding Hamilton Lane Incorporated (NASDAQ:HLNE) in its Q4 2024 investor letter: "Hamilton Lane Incorporated (NASDAQ:HLNE) is a private markets advisory and funds business serving primarily institutional investors. A robust performer for the better part of 2024, the stock came under pressure in the back half of the quarter, which coincided with rising rates in anticipation of the Fed pulling back on its 2025 rate cut expectations. We maintain our belief that the company is well-positioned given the growth in private markets across asset classes, as well as Hamilton Lane's highly durable and recurring fee revenue and fee earnings." A financial advisor navigating a stock exchange board with a magnifying glass. Hamilton Lane Incorporated (NASDAQ:HLNE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Hamilton Lane Incorporated (NASDAQ:HLNE) at the end of the third quarter which was 18 in the previous quarter. While we acknowledge the potential of Hamilton Lane Incorporated (NASDAQ:HLNE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we discussed Hamilton Lane Incorporated (NASDAQ:HLNE) and shared Artisan Small Cap Fund's views on the company in the previous quarter. Hamilton Lane Incorporated (NASDAQ:HLNE) was one of the top three contributors to Polen U.S. Small Company Growth Strategy's relative performance in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
