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What's in the Cards for Main Street (MAIN) in Q4 Earnings?

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Main Street Capital Corporation (MAIN - Free Report) is slated to announce fourth-quarter 2019 results on Feb 27, after market close. The company’s revenues and earnings are expected to have declined year over year.

The company has a decent earnings surprise history. It surpassed the Zacks Consensus Estimate in three of the trailing four quarters, with the positive earnings surprise being 3.2%, on average.

In the last reported quarter, the company lagged the consensus estimate on lower fee income and rise in expenses, partially offset by higher dividend income.

Main Street Capital Corporation Price and EPS Surprise

The Zacks Consensus Estimate for Main Street’s earnings of 60 cents for the to-be-reported quarter has been unchanged over the past 30 days. However, it indicates a fall of 13% from the year-ago reported figure. Also, the consensus estimate for sales of $59.2 million suggests marginal decline.

Factors at Play

Due to the lower interest rates, Main Street is likely to have witnessed fall in interest income during the quarter. However, expectation of higher prepayment activity might have given fee income some support.

The Zacks Consensus Estimate for interest, fee and dividend income from non-control/non-affiliate investments (constituting 48% of the company’s total investment income) is pegged at $29,620, indicating 2.5% rise from the previous quarter’s reported figure.

Main Street has witnessed rise in general and compensation-related expenses over the past several quarters. The trend is likely to have persisted in the to-be-reported quarter as well.

Earnings Whispers

According to our quantitative model, chances of Main Street beating the Zacks Consensus Estimate this time around are low. 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 better.

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 Main Street is 0.00%.

Zacks Rank: Main Street has a Zacks Rank #3.

Stocks to Consider

Gladstone Investment Corporation’s (GAIN - Free Report) shares have rallied 8% in six months’ time. Also, the company’s earnings estimates for the current fiscal year have been revised upward over the past 30 days. The stock carries a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hercules Capital’s (HTGC - Free Report) share price has increased 16.8% over the past six months. Further, the company’s earnings estimates for the ongoing year have been stable in the past 30 days. The stock carries a Zacks Rank of 2, currently.

Medallion Financial Corp.’s (MFIN - Free Report) shares have gained 35.8% over the past six months. This Zacks Rank #1 company’s earnings estimates for the current year have moved up in 30 days’ time.

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