What's in Store for Horizon Technology (HRZN) in Q2 Earnings?
Horizon Technology Finance Corporation HRZN is slated to report second-quarter 2023 results on Aug 1, after market close. Its quarterly revenues and earnings are anticipated to have improved on a year-over-year basis.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate. Results reflected an improvement in total investment income and solid portfolio activity. However, a jump in expenses hurt results to some extent.
Horizon Technology has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 17.32%.
Horizon Technology Finance Corporation Price and EPS Surprise
Horizon Technology Finance Corporation price-eps-surprise | Horizon Technology Finance Corporation Quote
Earnings & Sales Projections for Q2
The Zacks Consensus Estimate for second-quarter earnings is pegged at 43 cents, unchanged over the past seven days. The figure indicates an increase of 22.9% from the year-ago quarter’s reported number.
The consensus estimate for sales of $26.23 million suggests a 41.1% surge on a year-over-year basis.
Key Factors at Play
While announcing the second-quarter portfolio update earlier this month, Horizon Technology noted that it originated $52.7 million of loans funded through the Horizon Platform, including 11 loans totaling $49.6 million funded by HRZN. Further, the company witnessed liquidity events from six portfolio companies, including principal prepayments and partial paydowns of $28.3 million and receipt of warrant and equity proceeds worth $1.5 million.
Also, the company received regularly scheduled principal payments on investments totaling $6.1 million. Thus, these factors, along with higher rates, are likely to have resulted in an improvement in HRZN’s total interest income from investments (constituting a significant portion of its total investment income) in the to-be-reported quarter.
Horizon Technology has been recording higher expenses over the past several quarters. As it continues to invest in venture growth stage companies, operating expenses are expected to have been elevated in the second quarter.
Earnings Whispers
According to our quantitative model, it cannot be conclusively predicted whether Horizon Technology will be able to beat the Zacks Consensus Estimate this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Horizon Technology has an Earnings ESP of 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #3.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Earnings Release Date and Performance of Other Stocks in the Same Industry
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.
Hercules Capital, Inc. HTGC is scheduled to announce quarterly numbers on Aug 3.
Over the past seven days, the Zacks Consensus Estimate for Hercules Capital’s second-quarter earnings has been unchanged at 50 cents. The estimate indicates a jump of 56.3% from the prior-year quarter’s reported number.
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Ares Capital Corporation (ARCC) : Free Stock Analysis Report
Hercules Capital, Inc. (HTGC) : Free Stock Analysis Report
Horizon Technology Finance Corporation (HRZN) : Free Stock Analysis Report
