Prospect Capital Corp Second Quarter Earnings Sneak Peek

The Cheat Sheet

Prospect Capital Corp will unveil its latest earnings on Thursday, February 9, 2012. Prospect Capital is engaged as a financial services company that primarily lends to and invests in middle market privately-held companies. It is a closed-end investment company.

Prospect Capital Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 29 cents per share, a decline of 23.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 28 cents. Between one and three months ago, the average estimate moved down. It has risen from 27 cents during the last month. Analysts are projecting profit to rise by 0% versus last year to $1.10.

Past Earnings Performance: The company is hoping to beat estimates after missing the mark for two straight quarters. Last quarter, it reported net income of 26 cents per share against an estimate of profit of 27 cents per share. The quarter before that, it missed forecasts by 5 cents.

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Wall St. Revenue Expectations: On average, analysts predict $62.6 million in revenue this quarter, a rise of 87.9% from the year ago quarter. Analysts are forecasting total revenue of $246.9 million for the year, a rise of 45.7% from last year’s revenue of $169.5 million.

Analyst Ratings: Analysts seem relatively indifferent about Prospect Capital with five of seven analysts surveyed maintaining a hold rating.

A Look Back: In the first quarter, profit rose 56% to $39.9 million (37 cents a share) from $25.6 million (34 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 39.1% to $55.3 million from $39.8 million.

Key Stats:

Revenue has gone up for three straight quarters. It rose 82.2% in the fourth quarter of the last fiscal year from the year earlier and 39.5% in the third quarter of the last fiscal year.

Stock Price Performance: During December 6, 2011 to February 3, 2012, the stock price had risen $1.46 (15.9%) from $9.19 to $10.65. The stock price saw one of its best stretches over the last year between December 30, 2011 and January 12, 2012 when shares rose for nine-straight days, rising 7.6% (+70 cents) over that span. It saw one of its worst periods between September 15, 2011 and September 22, 2011 when shares fell for six-straight days, falling 5.9% (-50 cents) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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