Specialty finance company Hercules Capital (NYSE: HTGC) will be announcing earnings results this Tuesday after market close. Here’s what you need to know.
Hercules Capital missed analysts’ revenue expectations last quarter, reporting revenues of $137.4 million, up 12.8% year on year. It was a slower quarter for the company, with a miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.
Is Hercules Capital a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Hercules Capital’s revenue to grow 18.4% year on year, a reversal from the 1.7% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Hercules Capital’s peers in the financial services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. PROG delivered year-on-year revenue growth of 11.1%, meeting analysts’ expectations, and Euronet Worldwide reported revenues up 10.5%, topping estimates by 4.3%. PROG traded up 24.1% following the results while Euronet Worldwide was down 4.4%.
Read our full analysis of PROG’s results here and Euronet Worldwide’s results here.
There has been positive sentiment among investors in the financial services segment, with share prices up 8.8% on average over the last month. Hercules Capital is up 7.3% during the same time and is heading into earnings with an average analyst price target of $19.36 (compared to the current share price of $16.30).
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