We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hercules Capital (HTGC) Q4 Earnings Beat Estimates, Costs Rise
Read MoreHide Full Article
Hercules Capital Inc.’s (HTGC - Free Report) fourth-quarter 2021 net investment income of 35 cents per share beat the Zacks Consensus Estimate of 33 cents. However, the bottom line fell 5.4% from the year-ago quarter figure.
The company recorded a fall in total investment income and higher expenses during the quarter. The balance sheet position remained strong and new commitments were robust.
Net investment income was $40.4 million, down 4.3% year over year.
In 2021, net investment income was $150 million or $1.29 per share, down from $157.1 million or $1.39 per share in 2020.
Total Investment Income Down, Expenses Rise
Total investment income in the quarter under review was $72.5 million, down 3.8% from the year-ago quarter. The top line marginally lagged the Zacks Consensus Estimate of $72.6 million.
In 2021, total investment income declined 2.2% to $281 million.
Total quarterly gross operating expenses rose 1.5% to $33.7 million. The rise was mainly due to an increase in total employee compensation costs.
Portfolio Value & New Commitments Solid
The fair value of Hercules Capital’s total investment portfolio was $2.43 billion as of Dec 31, 2021.
In the fourth quarter, the company delivered $947.8 million in gross new debt and equity commitments and realized early loan repayments of $425.8 million.
Balance Sheet Position Strong
As of Dec 31, 2021, Hercules Capital’s net asset value was $11.22 per share compared with $11.26 as of Dec 31, 2020.
The company had $627.7 million in liquidity, including $133.1 million of unrestricted cash and cash equivalents and $494.6 million in credit facilities, as of Dec 31, 2021.
At the end of the quarter, the weighted average cost of debt, comprising interest and fees, was 4.5%, down from 5.2% at the end of the prior-year quarter.
Our Take
Hercules Capital’s loan origination activity continues to be on track, which is likely to support top-line growth in the quarters ahead. However, as the company continues to undertake efforts to improve originations, expenses are expected to remain elevated.
Hercules Capital, Inc. Price, Consensus and EPS Surprise
FS KKR Capital Corp. (FSK - Free Report) is slated to announce quarterly numbers on Feb 28.
Over the past 30 days, the Zacks Consensus Estimate for FS KKR Capital’s quarterly earnings has been unchanged at 62 cents, implying a 13.9% decline from the prior-year reported number.
Horizon Technology Finance Corporation (HRZN - Free Report) is scheduled to announce quarterly numbers on Mar 1.
Over the past 30 days, the Zacks Consensus Estimate for Horizon Technology Finance has been unchanged at 33 cents. This indicates a jump of 57.1% from the prior-year quarter reported number.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Hercules Capital (HTGC) Q4 Earnings Beat Estimates, Costs Rise
Hercules Capital Inc.’s (HTGC - Free Report) fourth-quarter 2021 net investment income of 35 cents per share beat the Zacks Consensus Estimate of 33 cents. However, the bottom line fell 5.4% from the year-ago quarter figure.
The company recorded a fall in total investment income and higher expenses during the quarter. The balance sheet position remained strong and new commitments were robust.
Net investment income was $40.4 million, down 4.3% year over year.
In 2021, net investment income was $150 million or $1.29 per share, down from $157.1 million or $1.39 per share in 2020.
Total Investment Income Down, Expenses Rise
Total investment income in the quarter under review was $72.5 million, down 3.8% from the year-ago quarter. The top line marginally lagged the Zacks Consensus Estimate of $72.6 million.
In 2021, total investment income declined 2.2% to $281 million.
Total quarterly gross operating expenses rose 1.5% to $33.7 million. The rise was mainly due to an increase in total employee compensation costs.
Portfolio Value & New Commitments Solid
The fair value of Hercules Capital’s total investment portfolio was $2.43 billion as of Dec 31, 2021.
In the fourth quarter, the company delivered $947.8 million in gross new debt and equity commitments and realized early loan repayments of $425.8 million.
Balance Sheet Position Strong
As of Dec 31, 2021, Hercules Capital’s net asset value was $11.22 per share compared with $11.26 as of Dec 31, 2020.
The company had $627.7 million in liquidity, including $133.1 million of unrestricted cash and cash equivalents and $494.6 million in credit facilities, as of Dec 31, 2021.
At the end of the quarter, the weighted average cost of debt, comprising interest and fees, was 4.5%, down from 5.2% at the end of the prior-year quarter.
Our Take
Hercules Capital’s loan origination activity continues to be on track, which is likely to support top-line growth in the quarters ahead. However, as the company continues to undertake efforts to improve originations, expenses are expected to remain elevated.
Hercules Capital, Inc. Price, Consensus and EPS Surprise
Hercules Capital, Inc. price-consensus-eps-surprise-chart | Hercules Capital, Inc. Quote
Currently, Hercules Capital carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates Other Finance Stocks
FS KKR Capital Corp. (FSK - Free Report) is slated to announce quarterly numbers on Feb 28.
Over the past 30 days, the Zacks Consensus Estimate for FS KKR Capital’s quarterly earnings has been unchanged at 62 cents, implying a 13.9% decline from the prior-year reported number.
Horizon Technology Finance Corporation (HRZN - Free Report) is scheduled to announce quarterly numbers on Mar 1.
Over the past 30 days, the Zacks Consensus Estimate for Horizon Technology Finance has been unchanged at 33 cents. This indicates a jump of 57.1% from the prior-year quarter reported number.