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Finance Stocks Q1 Earnings Releases on May 4: HTGC, MAIN, LC
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Results released by the finance companies so far this quarter depict an encouraging earnings picture for the industry. Of the 76.6% S&P 500 finance companies that reported earnings so far, 69.4% delivered better-than-expected results. The results reflect easing of margin pressure supported by higher interest rates. The credit trends this quarter, however, are on the weaker side.
Per the latest Zacks Earnings Preview, overall earnings for the S&P 500 stocks in the finance sector are expected to increase 10.1% year over year for the quarter.
Our quantitative model offers some insights into stocks that are about to report their earnings. Per the model, in order to be confident of an earnings beat, a stock needs to have the right combination of the two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Let’s have a look at three Zacks Rank #3 finance stocks that are expected to report their first-quarter 2017 earnings after market close on May 4:
Hercules Capital, Inc.’s (HTGC - Free Report) Zacks Consensus Estimate of 29 cents reflects year-over-year growth of 5.4%. However, the figure declined 3.3% over the past 30 days. Despite carrying a favorable Zacks Rank, we cannot predict an earnings beat this quarter because the company has an Earnings ESP of -3.45%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Notably, the stock posted an average beat of 11.2% for the trailing four quarters, as demonstrated in the chart below:
The Zacks Consensus Estimate of Main Street Capital Corporation (MAIN - Free Report) remained stable at 56 cents over the last 30 days. However, it reflects a year-over-year improvement of 6.3%. Per our model, the company is likely to beat the Zacks Consensus Estimate this quarter because along with a favorable Zacks Rank it has an Earnings ESP of +3.57%.
Notably, it delivered an average positive surprise of 1.8% in the trailing four quarters as depicted below:
Main Street Capital Corporation Price and EPS Surprise
LendingClub Corporation’s (LC - Free Report) Zacks Consensus Estimate is pegged at a loss of 9 cents for the upcoming release, which reflects a significant decline from the year-ago quarter. Also, estimates remained stable over the last 30 days.
The company’s first-quarter results are expected to reflect lower revenues from transaction fees because of less impressive loan originations in the quarter. Further, the challenges faced by online lending companies are expected to keep its top line under pressure. Moreover, it is unlikely for the company to deliver an earnings beat this time around, as it has an Earnings ESP of -11.11%. (Read more: Will LendingClub Disappoint Investors in Q1 Earnings?)
The company delivered an average negative surprise of 27.2% in the trailing for quarters, as can be seen in the chart below:
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
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Finance Stocks Q1 Earnings Releases on May 4: HTGC, MAIN, LC
Results released by the finance companies so far this quarter depict an encouraging earnings picture for the industry. Of the 76.6% S&P 500 finance companies that reported earnings so far, 69.4% delivered better-than-expected results. The results reflect easing of margin pressure supported by higher interest rates. The credit trends this quarter, however, are on the weaker side.
Per the latest Zacks Earnings Preview, overall earnings for the S&P 500 stocks in the finance sector are expected to increase 10.1% year over year for the quarter.
Our quantitative model offers some insights into stocks that are about to report their earnings. Per the model, in order to be confident of an earnings beat, a stock needs to have the right combination of the two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Let’s have a look at three Zacks Rank #3 finance stocks that are expected to report their first-quarter 2017 earnings after market close on May 4:
Hercules Capital, Inc.’s (HTGC - Free Report) Zacks Consensus Estimate of 29 cents reflects year-over-year growth of 5.4%. However, the figure declined 3.3% over the past 30 days. Despite carrying a favorable Zacks Rank, we cannot predict an earnings beat this quarter because the company has an Earnings ESP of -3.45%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Notably, the stock posted an average beat of 11.2% for the trailing four quarters, as demonstrated in the chart below:
Hercules Capital, Inc. Price and EPS Surprise
Hercules Capital, Inc. Price and EPS Surprise | Hercules Capital, Inc. Quote
The Zacks Consensus Estimate of Main Street Capital Corporation (MAIN - Free Report) remained stable at 56 cents over the last 30 days. However, it reflects a year-over-year improvement of 6.3%. Per our model, the company is likely to beat the Zacks Consensus Estimate this quarter because along with a favorable Zacks Rank it has an Earnings ESP of +3.57%.
Notably, it delivered an average positive surprise of 1.8% in the trailing four quarters as depicted below:
Main Street Capital Corporation Price and EPS Surprise
Main Street Capital Corporation Price and EPS Surprise | Main Street Capital Corporation Quote
LendingClub Corporation’s (LC - Free Report) Zacks Consensus Estimate is pegged at a loss of 9 cents for the upcoming release, which reflects a significant decline from the year-ago quarter. Also, estimates remained stable over the last 30 days.
The company’s first-quarter results are expected to reflect lower revenues from transaction fees because of less impressive loan originations in the quarter. Further, the challenges faced by online lending companies are expected to keep its top line under pressure. Moreover, it is unlikely for the company to deliver an earnings beat this time around, as it has an Earnings ESP of -11.11%. (Read more: Will LendingClub Disappoint Investors in Q1 Earnings?)
The company delivered an average negative surprise of 27.2% in the trailing for quarters, as can be seen in the chart below:
LendingClub Corporation Price and EPS Surprise
LendingClub Corporation Price and EPS Surprise | LendingClub Corporation Quote
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>