Capitala Finance Corp. (CPTA - Free Report) is scheduled to announce second-quarter 2019 results on Aug 5, after the market closes. Its revenues and earnings are projected to grow year over year.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Its results benefited from rise in total investment income, partly offset by higher expenses.
The company does not have an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in only one of the trailing four quarters.
Moreover, activities of the company in the second quarter failed to win analysts’ confidence. As a result, the Zacks Consensus Estimate for earnings of 25 cents has remained unchanged over the past 30 days. Nonetheless, it implies 13.6% growth from the year-ago quarter’s reported figure.
Further, the consensus estimate for sales of $12.48 million suggests growth of 5.1% on a year-over-year basis.
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 results.
Factors to Impact Q2 Results
Given the contraction in LIBOR rates in the second quarter, Capitala Finance’s floating-rate debt investments, which are tied to LIBOR will likely hurt investment income. Nevertheless, the expectation of higher prepayment activity during the quarter is likely to have supported total investment income to some extent.
According to our quantitative model, it cannot be conclusively predicted whether Capitala Finance 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 — 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: Capitala Finance has an Earnings ESP of 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #3. While this increases the predictive power of ESP, we also need a positive ESP to be confident of an earnings beat.
Stocks That Warrant a Look
Here are a few stocks that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Apollo Investment Corporation (AINV - Free Report) is scheduled to release results on Aug 6. It presently has an Earnings ESP of +1.82% and a Zacks Rank #3.
Banco Macro S.A. (BMA - Free Report) is expected to release results on Aug 28. It has an Earnings ESP of +11.83% and a Zacks Rank #3.
Eaton Vance Corporation (EV - Free Report) is expected to release quarterly results on Sep 4. It has an Earnings ESP of +3.21% and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>