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Investing.com - Goldman Sachs has reiterated its Sell rating and $139.00 price target on Hamilton Lane Inc . (NASDAQ:HLNE), a $8.66 billion market cap investment management firm, following the company’s second-quarter 2025 earnings report. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.
Hamilton Lane reported adjusted earnings per share of $1.31 for the quarter, significantly exceeding the Visible Alpha Consensus estimate of $1.01 and Goldman Sachs’ projection of $1.02. The earnings beat was primarily attributed to Fee Related Performance Revenues (FRPR) of $30 million, which outperformed expectations of $14 million and added approximately $0.29 to the EPS figure. The company’s strong performance is reflected in its impressive 28.73% revenue growth and 35% return on equity, as reported by InvestingPro.
Management fees reached $117 million, aligning with Street estimates and representing a 5% quarter-over-quarter increase. Fee-related earnings (FRE) of $84 million substantially surpassed the Street’s expectation of $70 million, driven by higher FRPR, while the FRE margin of 51.3% exceeded the anticipated 47.0%. InvestingPro data shows the company maintains strong financial health with a 4.03 current ratio, indicating robust liquidity management.
Fee-paying assets under management (FPAUM) grew to $74.4 billion, reflecting a 3% quarter-over-quarter increase and surpassing Street expectations of $73.8 billion by 1%. Total (EPA:TTEF) FPAUM contributions, net of distributions, amounted to $1,795 million, representing an annualized growth rate of approximately 10%.
Goldman Sachs characterized the results as "encouraging" and suggested that market focus would likely shift toward assessing the sustainability of FRPR and margins, as well as the overall health of Hamilton Lane’s retail distribution channel.
In other recent news, Hamilton Lane Inc. reported its first-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $1.21, compared to the forecasted $1.14. The company also achieved higher-than-expected revenue, reporting $197.97 million against an anticipated $165.72 million. This strong performance follows a successful fourth quarter, where Hamilton Lane saw a $58 million boost in performance revenues due to changes in the fee structure of certain U.S. Evergreen funds.
Additionally, Keefe, Bruyette & Woods analysts revised their outlook on Hamilton Lane, lowering the stock price target from $162 to $155 while maintaining a Market Perform rating. In corporate leadership news, Mario L. Giannini, Executive Co-Chairman of Hamilton Lane, announced he will not stand for re-election as a director at the company’s 2025 Annual Meeting of Stockholders. Giannini will continue to serve as Executive Co-Chairman following his departure from the board. These developments provide insight into the recent activities and strategic decisions at Hamilton Lane.
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