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What to Expect From Gladstone Investment (GAIN) Q4 Earnings?

Zacks Equity Research

Gladstone Investment Corporation GAIN is scheduled to report fourth-quarter fiscal year ended Mar 31, 2019 results on May 13, after market close. Its revenues and earnings are expected to decline year over year.

Before we take a look at what our quantitative model predicts, let’s check how the company performed in the past quarters.

Gladstone Investment has an impressive surprise history. It outpaced earnings estimates in three of the trailing four quarters, the average positive surprise being 1.3%.

In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results were supported by higher investment income and decline in expenses.

Gladstone Investment Corporation Price and EPS Surprise

Gladstone Investment Corporation Price and EPS Surprise
Gladstone Investment Corporation Price and EPS Surprise

Gladstone Investment Corporation price-eps-surprise | Gladstone Investment Corporation Quote

Activities of the company during the to-be-reported quarter were inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate for earnings of 20 cents remained unchanged over the last seven days. Also, it indicates a decline of 4.8% from the prior-year quarter’s reported figure.

Also, the consensus estimate for sales of $13.93 million implies 9.6% fall.

Here is what our quantitative model predicts:

Gladstone Investment doesn’t have the right combination of the two key ingredients — positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The company has an Earnings ESP of 0.00%.

Zacks Rank: It carries a Zacks Rank #3, which increases the predictive power of ESP. But we need to have positive Earnings ESP to be sure of an earnings beat.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Factors to Influence Q4 Results

Given the expectation of higher prepayment activity during the quarter, total investment income is likely to be positively impacted. Also, with the increase in LIBOR rates, Gladstone Investment’s floating-rate debt investments, which are tied to LIBOR, are likely to support investment income.

With growing asset base, Gladstone Investment’s base management fee is expected to rise. Also, as the company continues to invest in the venture growth stage companies, operating expenses are likely to remain elevated in the fiscal fourth quarter.

Earnings Schedule of Other Companies

Apollo Investment Corporation AINV is scheduled to report results on May 16. Victory Capital Holdings, Inc. VCTR and Harvest Capital Credit Corporation HCAP will release results on May 14.

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Harvest Capital Credit Corporation (HCAP) : Free Stock Analysis Report
Gladstone Investment Corporation (GAIN) : Free Stock Analysis Report
Apollo Investment Corporation (AINV) : Free Stock Analysis Report
Victory Capital Holdings, Inc. (VCTR) : Free Stock Analysis Report
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