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What's in Store for TriplePoint Venture (TPVG) Q3 Earnings?

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TriplePoint Venture Growth BDC Corp. (TPVG - Free Report) is slated to announce third-quarter 2020 results on Nov 5, after market close. Its revenues and earnings for the to-be-reported quarter are expected to have grown year over year.

In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results benefited from an increase in investment income, partly offset by higher expenses.

TriplePoint has a decent earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the negative surprise being 2.6%, on average.

Before we take a look at what our quantitative model predicts for the third quarter, let’s check the factors that are likely to have influenced its performance.

Factors to Impact Q3 Results

Given the expectation of higher prepayment activity during the third quarter, interest income from investment, and other income are likely to have been positively impacted. The consensus estimate for interest income from investments of $21.97 million indicates 40% growth from the year-ago number. Likewise, the Zacks Consensus Estimate for other income is $0.7 million, suggesting significant year-over-year growth.

On the cost front, TriplePoint has been witnessing higher expenses over the past several quarters. Moreover, as the company continues to invest in the venture growth stage companies, operating expenses are likely to have been elevated in the to-be-reported quarter.

What Does Our Quantitative Model Predict?

According to our quantitative model, it cannot be conclusively predicted whether TriplePoint will be able to beat the Zacks Consensus Estimate in the third quarter. This is because it doesn’t have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat.

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

Earnings ESP: TriplePoint has an Earnings ESP of 0.00%.

Zacks Rank: TriplePoint currently carries a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Notably, activities of the company in the third quarter were inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate for earnings of 36 cents remained unchanged over the past seven days. It reflects a year-over-year improvement of 24.1%.

Further, the Zacks Consensus Estimate for sales is pegged at $22.7 million, which reflects 44.5% growth.

Earnings Date of Other Finance Stocks

Among other finance stocks, LendingTree, Inc. (TREE - Free Report) , Ellington Financial LLC (EFC - Free Report) and Main Street Capital Corporation (MAIN - Free Report) are also slated to release results on Nov 5.

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