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What's in Store for Prospect Capital (PSEC) in Q1 Earnings?
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Prospect Capital Corporation (PSEC - Free Report) is scheduled to announce first-quarter fiscal 2023 (ended Sep 30) results on Nov 9, after market close. While its revenues are expected to have increased year over year, earnings are likely to have declined.
In the last reported quarter, PSEC’s earnings outpaced the Zacks Consensus Estimate. Results gained from an increase in total investment income, while higher expenses were on the downside.
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 16.3%.
Prospect Capital Corporation Price and EPS Surprise
The Zacks Consensus Estimate for fiscal first-quarter earnings of 20 cents has been unchanged over the past seven days. The estimate indicates a fall of 4.8% from the year-ago reported figure.
The Zacks Consensus Estimate for sales of $195.6 million suggests a rise of 15.4%.
Before we take a look at what our quantitative model predicts for the fiscal first quarter, let’s check the factors that are likely to have impacted the performance.
Factors to Influence Q1 Results
In the June-September quarter, the Federal Reserve raised interest rates by 150 basis points, following a couple of interest rate hikes earlier during the year. So, supported by higher rates, PSEC is expected to have recorded an improvement in its total investment income in the to-be-reported quarter.
The company has been witnessing higher expenses over the past several quarters. As Prospect Capital has been investing in venture growth stage companies, operating expenses are likely to have been elevated in the to-be-reported quarter as well.
Earnings Whispers
According to our quantitative model, it cannot be conclusively predicted whether Prospect Capital will be able to beat the Zacks Consensus Estimate this time. 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 higher.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Prospect Capital has an Earnings ESP of 0.00%.
Zacks Rank: PSEC currently carries a Zacks Rank #3.
Stocks to Consider
A couple of stocks from the same industry worth a look at are Hercules Capital, Inc. (HTGC - Free Report) and Ares Capital Corporation (ARCC - Free Report) .
The Zacks Consensus Estimate for HTGC’s current-year earnings has been revised upward by 10.5% over the past month. The stock has lost 1.4% in the past three months. HTGC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ares Capital’s earnings estimates for the current year have been revised 5.8% upward over the past 30 days. The stock has lost 2.1% over the past three months. ARCC currently carries a Zacks Rank of 2 (Buy).
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What's in Store for Prospect Capital (PSEC) in Q1 Earnings?
Prospect Capital Corporation (PSEC - Free Report) is scheduled to announce first-quarter fiscal 2023 (ended Sep 30) results on Nov 9, after market close. While its revenues are expected to have increased year over year, earnings are likely to have declined.
In the last reported quarter, PSEC’s earnings outpaced the Zacks Consensus Estimate. Results gained from an increase in total investment income, while higher expenses were on the downside.
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 16.3%.
Prospect Capital Corporation Price and EPS Surprise
Prospect Capital Corporation price-eps-surprise | Prospect Capital Corporation Quote
The Zacks Consensus Estimate for fiscal first-quarter earnings of 20 cents has been unchanged over the past seven days. The estimate indicates a fall of 4.8% from the year-ago reported figure.
The Zacks Consensus Estimate for sales of $195.6 million suggests a rise of 15.4%.
Before we take a look at what our quantitative model predicts for the fiscal first quarter, let’s check the factors that are likely to have impacted the performance.
Factors to Influence Q1 Results
In the June-September quarter, the Federal Reserve raised interest rates by 150 basis points, following a couple of interest rate hikes earlier during the year. So, supported by higher rates, PSEC is expected to have recorded an improvement in its total investment income in the to-be-reported quarter.
The company has been witnessing higher expenses over the past several quarters. As Prospect Capital has been investing in venture growth stage companies, operating expenses are likely to have been elevated in the to-be-reported quarter as well.
Earnings Whispers
According to our quantitative model, it cannot be conclusively predicted whether Prospect Capital will be able to beat the Zacks Consensus Estimate this time. 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 higher.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Prospect Capital has an Earnings ESP of 0.00%.
Zacks Rank: PSEC currently carries a Zacks Rank #3.
Stocks to Consider
A couple of stocks from the same industry worth a look at are Hercules Capital, Inc. (HTGC - Free Report) and Ares Capital Corporation (ARCC - Free Report) .
The Zacks Consensus Estimate for HTGC’s current-year earnings has been revised upward by 10.5% over the past month. The stock has lost 1.4% in the past three months. HTGC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ares Capital’s earnings estimates for the current year have been revised 5.8% upward over the past 30 days. The stock has lost 2.1% over the past three months. ARCC currently carries a Zacks Rank of 2 (Buy).
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.