Shares of Houlihan Lokey (HLI) plummeted 9.12% in after-hours trading on Wednesday following the release of its fiscal first-quarter earnings report.

The significant drop was triggered by the company's financial results, which fell well short of analyst expectations. Houlihan Lokey reported quarterly revenue of $511 million, compared to the IBES estimate of $630 million. Furthermore, adjusted net income came in at $91 million, missing the consensus estimate of $121.4 million.

The earnings miss across both top and bottom lines has prompted a sharp negative reaction from investors, leading to the considerable after-hours decline in the stock.