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What's in the Cards for Main Street (MAIN) Q1 Earnings?

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Main Street Capital Corporation (MAIN - Free Report) is slated to announce first-quarter 2021 results on May 6, after market close. The company’s revenues are expected to have increased year over year, while earnings might have declined.

The company has a decent earnings surprise history. It surpassed the Zacks Consensus Estimate in two of the trailing four quarters. The earnings surprise was 4.85%, on average.

In the last reported quarter, the company outpaced the consensus mark on higher total investment income and a solid liquidity position. However, a decrease in net asset value and a rise in operating expenses were headwinds.

The Zacks Consensus Estimate for Main Street’s earnings of 55 cents for the to-be-reported quarter remained unchanged over the past seven days. Also, it indicates a fall of 3.5% from the year-ago reported figure.

Key Factors to Note

Due to lower interest rates, Main Street is likely to have witnessed a fall in interest income during the quarter. However, the expectation of higher prepayment activities might have provided fee income some support.

The Zacks Consensus Estimate for sales of $58.7 million suggests a 4.5% year-over-year rise.

Positive strong origination volume is anticipated to have aided the company in the to-be reported quarter, as concerns regarding loan activity and economy have subsided with greater vaccination penetration.

However, Main Street has been witnessing rise in general and compensation-related expenses for the past several quarters.

Earnings Whispers

According to our quantitative model, chances of the company beating the Zacks Consensus Estimate this time around are low. 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 better.

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

Earnings ESP: The Earnings ESP for Main Street is 0.00%.

Zacks Rank: Main Street carries a Zacks Rank #3.

Earnings Release Dates of Other Finance Companies

Among other finance stocks, FS Bancorp, Inc. (FSBW - Free Report) is set to release results on May 7, while Gladstone Investment Corporation (GAIN - Free Report) and OFS Capital Corporation (OFS - Free Report) will report on May 11.

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