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What's in the Cards for PennantPark (PNNT) in Q3 Earnings?
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PennantPark Investment Corporation (PNNT - Free Report) is slated to report third-quarter fiscal 2023 (ended Jun 30) results on Aug 9, after market close. The company’s earnings and revenues in the to-be-reported quarter are expected to have improved on a year-over-year basis.
In the last reported quarter, PNNT’s earnings surpassed the Zacks Consensus Estimate. Results reflected an increase in total investment income and higher expenses.
PNNT has a disappointing earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in one of the trailing four quarters, and missed thrice, the average negative surprise being 1.16%.
PennantPark Investment Corporation Price and EPS Surprise
The Zacks Consensus Estimate for PNNT’s fiscal third-quarter earnings is pegged at 27 cents per share, unchanged over the past seven days. The estimate indicates a 68.8% surge from the year-ago quarter’s reported number.
The consensus estimate for sales is pegged at $35.1 million, suggesting a jump of 50.1%.
Other Key Estimate
Federal Reserve hiked rates by 25 basis points in the to-be-reported quarter. With this, the policy rate in the June-end quarter stood at 5-5.25%. This is likely to have majorly supported interest income for PNNT.
The Zacks Consensus Estimate for interest income from non-controlled, non-affiliated investmentsis pegged at $23.9 million, which implies a year-over-year gain of 50.6%.
The consensus estimate for other income from non-controlled, non-affiliated investmentsis pegged at $0.46 million, indicating a rise of 32.9%.
PennantParkhas been witnessing an escalation in total expenses for the past several quarters. Additionally, amid rising inflation, compensation expenses are anticipated to have led to elevated total expenditures. Thus, overall expenses are likely to have moved up in the to-be-reported quarter.
Earnings Whisper
The proven Zacks model does not predict an earnings beat for PennantPark this time around. This is because the company does not have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — for increasing 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: PNNT has an Earnings ESP of -17.29%.
Zacks Rank: PNNT currently sports a Zacks Rank #1 (Strong Buy). While this increases the predictive power of ESP, we also need a positive ESP to be confident of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Two Finance Stocks
Ares Capital Corporation’s (ARCC - Free Report) second-quarter 2023 core earnings of 58 cents per share surpassed the Zacks Consensus Estimate by a penny. The bottom line also reflected a rise of 26.1% from the prior-year quarter.
Results were primarily aided by an improvement in total investment income. Also, portfolio activity was robust in the quarter. However, an increase in expenses hurt ARCC’s results to some extent.
Capital One’s (COF - Free Report) second-quarter 2023 earnings of $3.52 per share outpaced the Zacks Consensus Estimate of $3.31. However, the bottom line tanked 29% from the year-ago quarter.
COF’s results were aided by increases in net interest income and fee income. However, despite higher rates, net interest margin declined year over year. Also, higher expenses, along with a significant rise in provisions, were the undermining factors.
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What's in the Cards for PennantPark (PNNT) in Q3 Earnings?
PennantPark Investment Corporation (PNNT - Free Report) is slated to report third-quarter fiscal 2023 (ended Jun 30) results on Aug 9, after market close. The company’s earnings and revenues in the to-be-reported quarter are expected to have improved on a year-over-year basis.
In the last reported quarter, PNNT’s earnings surpassed the Zacks Consensus Estimate. Results reflected an increase in total investment income and higher expenses.
PNNT has a disappointing earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in one of the trailing four quarters, and missed thrice, the average negative surprise being 1.16%.
PennantPark Investment Corporation Price and EPS Surprise
PennantPark Investment Corporation price-eps-surprise | PennantPark Investment Corporation Quote
Earnings & Sales Projections
The Zacks Consensus Estimate for PNNT’s fiscal third-quarter earnings is pegged at 27 cents per share, unchanged over the past seven days. The estimate indicates a 68.8% surge from the year-ago quarter’s reported number.
The consensus estimate for sales is pegged at $35.1 million, suggesting a jump of 50.1%.
Other Key Estimate
Federal Reserve hiked rates by 25 basis points in the to-be-reported quarter. With this, the policy rate in the June-end quarter stood at 5-5.25%. This is likely to have majorly supported interest income for PNNT.
The Zacks Consensus Estimate for interest income from non-controlled, non-affiliated investmentsis pegged at $23.9 million, which implies a year-over-year gain of 50.6%.
The consensus estimate for other income from non-controlled, non-affiliated investmentsis pegged at $0.46 million, indicating a rise of 32.9%.
PennantParkhas been witnessing an escalation in total expenses for the past several quarters. Additionally, amid rising inflation, compensation expenses are anticipated to have led to elevated total expenditures. Thus, overall expenses are likely to have moved up in the to-be-reported quarter.
Earnings Whisper
The proven Zacks model does not predict an earnings beat for PennantPark this time around. This is because the company does not have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — for increasing 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: PNNT has an Earnings ESP of -17.29%.
Zacks Rank: PNNT currently sports a Zacks Rank #1 (Strong Buy). While this increases the predictive power of ESP, we also need a positive ESP to be confident of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Two Finance Stocks
Ares Capital Corporation’s (ARCC - Free Report) second-quarter 2023 core earnings of 58 cents per share surpassed the Zacks Consensus Estimate by a penny. The bottom line also reflected a rise of 26.1% from the prior-year quarter.
Results were primarily aided by an improvement in total investment income. Also, portfolio activity was robust in the quarter. However, an increase in expenses hurt ARCC’s results to some extent.
Capital One’s (COF - Free Report) second-quarter 2023 earnings of $3.52 per share outpaced the Zacks Consensus Estimate of $3.31. However, the bottom line tanked 29% from the year-ago quarter.
COF’s results were aided by increases in net interest income and fee income. However, despite higher rates, net interest margin declined year over year. Also, higher expenses, along with a significant rise in provisions, were the undermining factors.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.