What's in Store for Hercules Capital (HTGC) in Q2 Earnings?
Hercules Capital, Inc. HTGC is slated to announce second-quarter 2023 results on Aug 3, after market close. Its revenues and earnings are likely to have improved on a year-over-year basis.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results benefited from an increase in total investment income, partly offset by higher expenses.
Hercules Capital has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 5.62%.
Hercules Capital, Inc. Price and EPS Surprise
Hercules Capital, Inc. price-eps-surprise | Hercules Capital, Inc. Quote
Q2 Earnings and Sales Estimates
The Zacks Consensus Estimate for second-quarter earnings of 50 cents has been unchanged over the past seven days. The figure indicates a jump of 56.3% from the year-ago quarter’s reported number. We project the same to be 46 cents per share.
The consensus estimate for sales of $107.9 million suggests a 49.6% surge. We expect total investment income to be $100 million.
Key Estimates for Q2
Given the high-interest rate regime, HTGC is expected to have benefited from an increase in total interest income (constituting more than 90% of its total investment income) in the to-be-reported quarter. The Zacks Consensus Estimate for total interest income is pegged at $102.6 million, suggesting an increase of 49.2% year over year. We expect the metric to be $96.2 million.
Hercules Capital expects prepayments to be in the range of $225-$320 million.
Further, management expects interest expenses to increase sequentially due to the balance sheet growth experienced in the first quarter. We expect interest expenses of $16.8 million, up 5% sequentially.
The company anticipates selling, general and administrative (SG&A) expenses to be between $22 million and $23 million.
Earnings Whispers
Our quantitative model does not conclusively predict an earnings beat for Hercules Capital this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Robinhood has an Earnings ESP of 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Earnings Release Date and Performance of Other Industry Players
Ares Capital Corporation’s ARCC second-quarter 2023 core earnings of 58 cents per share surpassed the Zacks Consensus Estimate by a penny. The bottom line also reflected a rise of 26.1% from the prior-year quarter.
Results were primarily aided by an improvement in total investment income. Also, ARCC’s portfolio activity was robust in the quarter. However, an increase in expenses hurt the results to some extent.
Main Street Capital Corporation MAIN is scheduled to announce quarterly numbers on Aug 3.
Over the past seven days, the Zacks Consensus Estimate for Main Street Capital’s second-quarter earnings has been unchanged at 99 cents. The estimate indicates a rise of 32% from the prior-year quarter’s reported number.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Ares Capital Corporation (ARCC) : Free Stock Analysis Report
Hercules Capital, Inc. (HTGC) : Free Stock Analysis Report
Main Street Capital Corporation (MAIN) : Free Stock Analysis Report
