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What to Expect From Horizon Technology's (HRZN) Q1 Earnings?

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Horizon Technology Finance Corporation (HRZN - Free Report) is scheduled to announce first-quarter 2020 results on Apr 28, after market close. Its revenues and earnings are likely to have improved in the quarter on a year-over-year basis.

In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. The results benefited from an increase in total investment income, partly offset by higher expenses.

Activities of the company in the first quarter failed to win analysts’ confidence. As a result, the Zacks Consensus Estimate for its earnings of 30 cents for the to-be-reported quarter has been unchanged over the past 30 days. Nonetheless, the figure indicates growth of 7.1% from the year-ago reported number.

The consensus estimate for sales of $11.1 million suggests 33% growth on a year-over-year basis.

Factors at Play

The company originated $50.5 million in loans during the first quarter to new and existing portfolio companies. Thus, despite lower interest rates, it is expected to have benefited from a rise in total interest income on investments (constituting more than 90% of total investment income) in the quarter.

Additionally, Horizon Technology received principal prepayments of $16.4 million and warrant proceeds worth $5.4 million from five portfolio companies in the to-be-reported quarter. This compares with $22.3 million and $2.0 million of principal prepayments and warrant proceeds, respectively, during the prior quarter.

The company further received regularly scheduled principal payments on investments of $4.2 million, down marginally on a sequential basis.

As of Mar 31, 2020, Horizon Technology closed new loan commitments worth $55.0 million to three companies compared with $88 million to six companies in the fourth quarter.

Earnings Whispers

Our quantitative model does not conclusively predict an earnings beat for Horizon Technology this time around. The combination of two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher — increases the odds of an earnings beat. But that’s not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Horizon Technology has an Earnings ESP of 0.00%.

Zacks Rank: The company currently carries a Zacks Rank #2 (Buy).

Stocks That Warrant a Look

Here are a few 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 in their upcoming releases.

Seacoast Banking Corporation of Florida (SBCF - Free Report) is scheduled to release quarterly results on Apr 28. The company currently has an Earnings ESP of +9.38% and a Zacks Rank of 3.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Earnings ESP for Boston Private Financial Holdings, Inc. is +1.54% and it carries a Zacks Rank of 3, currently. The company is set to announce quarterly numbers on Apr 29.

First BanCorp. (FBP - Free Report) is slated to report quarterly earnings on Apr 30. The company, which carries a Zacks Rank of 3 at present, has an Earnings ESP of +8.51%.

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