Specialty finance company Hercules Capital (NYSE:HTGC) will be reporting earnings this Thursday afternoon. Here’s what investors should know.
Hercules Capital beat analysts’ revenue expectations by 6.3% last quarter, reporting revenues of $137.5 million, up 10% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
Is Hercules Capital a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Hercules Capital’s revenue to grow 10.4% year on year to $138.3 million, improving from the 7.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.48 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Hercules Capital has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Hercules Capital’s peers in the financial services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. PROG’s revenues decreased 1.8% year on year, beating analysts’ expectations by 1.5%, and PayPal reported revenues up 7.3%, topping estimates by 2.2%. PROG traded down 5% following the results.
Read our full analysis of PROG’s results here and PayPal’s results here.
Investors in the financial services segment have had steady hands going into earnings, with share prices flat over the last month. Hercules Capital is down 3.7% during the same time and is heading into earnings with an average analyst price target of $21.09 (compared to the current share price of $18.19).
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