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Gladstone (GAIN) to Report Q4 Earnings: What's in the Offing?

·3 min read

Gladstone Investment Corporation GAIN is scheduled to report fourth-quarter fiscal 2020 (ended Mar 31) results on May 13 before the bell. The company’s revenues and earnings are projected to reflect year-over-year decreases.

In the last reported quarter, the company’s earnings remained in line with the Zacks Consensus Estimate. Results were supported by higher investment income, offset by elevated expenses.

The company has an impressive earnings surprise history. Its earnings surpassed estimates in three of the trailing four quarters and met in the other, the average positive beat being 13.75%.

Further, the company’s activities in the fiscal fourth quarter were inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate of 20 cents for earnings remained unchanged, over the last 30 days. The figure indicates a year-over-year decrease of 13%.

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

Let’s see how things have shaped up for this announcement.

The company does not have the right combination of the two key ingredients for a possible earnings beat — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold).

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

Earnings ESP: The Earnings ESP for the stock is currently pegged at 0.00%.

Zacks Rank: Gladstone currently holds a Zacks Rank of 2, which increases the predictive power of ESP. But we also need to have a positive ESP to be confident of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Factors

Given the expectation of higher prepayment activity during the fiscal fourth quarter, total investment income is likely to have been positively impacted. Also, with high LIBOR rates, Gladstone Investment’s floating-rate debt investments, which are tied to LIBOR, are likely to have supported investment income.

With a growing asset base, Gladstone Investment’s base management fee is expected to have increased. Also, as it continues to invest in the venture growth stage companies, operating expenses are likely to have flared up in the fiscal fourth quarter.

Among other finance stocks, Apollo Investment Corporation AINV is scheduled to report earnings numbers on May 21, Harvest Capital Credit Corporation HCAP on May 13 and Noah Holdings Ltd NOAH on May 18.

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