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.
FS KKR Capital (FSK) to Post Q3 Earnings: What's in Store?
Read MoreHide Full Article
FS KKR Capital Corp. (FSK - Free Report) is slated to report third-quarter 2022 results on Nov 7, after the market closes. Its quarterly revenues and earnings are projected to improve year over year.
In the last reported quarter, the company’s earnings outpaced the Zacks Consensus Estimate. Results benefited from solid growth in total investment income, partly offset by higher operating expenses.
The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 5.5%.
Also, the activities of the company during the third quarter seem to be adequate to win analysts’ confidence. The Zacks Consensus Estimate for the third quarter earnings of 73 cents has been revised 1.4% upward over the past 30 days. The figure reflects a year-over-year rise of 14.1%.
Further, the Zacks Consensus Estimate for sales of $407.9 indicates an increase of 13.3%.
Before we take a look at what our quantitative model predicts for the to-be-reported quarter, let’s check the factors that are likely to impact the company quarter’s performance.
Factors to Influence Q3 Results
At the time of announcing second-quarter results in August, FSK KKR Capital’s CEO and chairman, Michael C. Forman noted “As we look toward the second half of the year, we expect the Federal Reserve's recent interest rate increases will have a positive effect on our net investment income as approximately 87% of our debt investments are floating rate structures.”
In fact, during the third quarter itself, the central bank raised the rates by 150 basis points, with the Fed Funds Rate standing in the range of 3.00-3.25%. Thus, this is likely to have had a positive impact on the company’s total investment income in the to-be-reported quarter.
Further, as FS KKR Capital continues to invest in the venture growth stage companies, operating expenses are likely to remain elevated.
Earnings Whispers
Our proven model predicts an earnings beat for FSK this time around. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher.
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 FS KKR Capital is +2.07%.
Zacks Rank: FSK currently carries a Zacks Rank #2 (Buy).
Other Finance Stocks Worth A Look
Here are a few other finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
The Earnings ESP for Focus Financial Partners Inc. is +0.33% and it carries a Zacks Rank #3 at present. The company is slated to report third-quarter 2022 results on Nov 3.
Over the past 30 days, the Zacks Consensus Estimate for Focus Financial’s quarterly earnings has been revised almost 1% lower.
Image: Bigstock
FS KKR Capital (FSK) to Post Q3 Earnings: What's in Store?
FS KKR Capital Corp. (FSK - Free Report) is slated to report third-quarter 2022 results on Nov 7, after the market closes. Its quarterly revenues and earnings are projected to improve year over year.
In the last reported quarter, the company’s earnings outpaced the Zacks Consensus Estimate. Results benefited from solid growth in total investment income, partly offset by higher operating expenses.
The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 5.5%.
FS KKR Capital Corp. Price and EPS Surprise
FS KKR Capital Corp. price-eps-surprise | FS KKR Capital Corp. Quote
Also, the activities of the company during the third quarter seem to be adequate to win analysts’ confidence. The Zacks Consensus Estimate for the third quarter earnings of 73 cents has been revised 1.4% upward over the past 30 days. The figure reflects a year-over-year rise of 14.1%.
Further, the Zacks Consensus Estimate for sales of $407.9 indicates an increase of 13.3%.
Before we take a look at what our quantitative model predicts for the to-be-reported quarter, let’s check the factors that are likely to impact the company quarter’s performance.
Factors to Influence Q3 Results
At the time of announcing second-quarter results in August, FSK KKR Capital’s CEO and chairman, Michael C. Forman noted “As we look toward the second half of the year, we expect the Federal Reserve's recent interest rate increases will have a positive effect on our net investment income as approximately 87% of our debt investments are floating rate structures.”
In fact, during the third quarter itself, the central bank raised the rates by 150 basis points, with the Fed Funds Rate standing in the range of 3.00-3.25%. Thus, this is likely to have had a positive impact on the company’s total investment income in the to-be-reported quarter.
Further, as FS KKR Capital continues to invest in the venture growth stage companies, operating expenses are likely to remain elevated.
Earnings Whispers
Our proven model predicts an earnings beat for FSK this time around. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher.
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 FS KKR Capital is +2.07%.
Zacks Rank: FSK currently carries a Zacks Rank #2 (Buy).
Other Finance Stocks Worth A Look
Here are a few other finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
The Earnings ESP for Focus Financial Partners Inc. is +0.33% and it carries a Zacks Rank #3 at present. The company is slated to report third-quarter 2022 results on Nov 3.
Over the past 30 days, the Zacks Consensus Estimate for Focus Financial’s quarterly earnings has been revised almost 1% lower.
Cigna Corporation (CI - Free Report) is also scheduled to release third-quarter 2022 earnings on Nov 3. CI, which carries a Zacks Rank #2 at present, has an Earnings ESP of +0.07%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CI’s quarterly earnings estimates have remained unchanged over the past month.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.