We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hercules Capital (HTGC) to Report Q2 Earnings: What's in Store?
Read MoreHide Full Article
Hercules Capital, Inc. (HTGC - Free Report) is slated to announce second-quarter 2024 results on Aug 1, after market close. While its revenues are likely to have improved in the quarter on a year-over-year basis, earnings are expected to have declined.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results were primarily aided by an increase in total investment income. Also, the balance sheet position was strong and new commitments were robust. However, a rise in operating expenses was a headwind.
Hercules Capital has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 6.5%.
The Zacks Consensus Estimate for HTGC’s second-quarter earnings of 51 cents per share has been unchanged over the past seven days. The figure indicates a decline of 3.7% from the year-ago quarter’s reported number.
The consensus estimate for sales of $125 million suggests a 7.5% year-over-year increase.
Other Key Estimates for Q2
Given the current high-interest rate environment, HTGC is expected to have benefited from an increase in interest income (constituting more than 90% of its total investment income) in the to-be-reported quarter. The Zacks Consensus Estimate for total interest and dividend income is pegged at $119 million, suggesting a year-over-year increase of 9.2%. We expect the metric to be $116.3 million.
Hercules Capital anticipates prepayments to accelerate from the first-quarter reported level and be $200-$300 million.
Management projects interest expenses to increase sequentially due to balance sheet growth. We expect interest expenses of $18.3 million, suggesting 4% sequential growth.
The company anticipates selling, general and administrative expenses of $23-$24 million.
Earnings Whispers
Our quantitative model does not conclusively predict an earnings beat for Hercules Capital this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: HTGC has an Earnings ESP of 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Results of Finance Stocks
Evercore Inc.’s (EVR - Free Report) second-quarter adjusted earnings per share of $1.81 surpassed the Zacks Consensus Estimate of $1.66. Also, the bottom line compared favorably with the prior-year quarter’s 96 cents.
EVR’s results benefited from an increase in revenues generated from the Investment Management, and Investment Banking & Equities segments. An improvement in the assets under management balance was another positive.
Capital One’s (COF - Free Report) second-quarter 2024 adjusted earnings of $3.14 per share lagged the Zacks Consensus Estimate of $3.28. In the prior-year quarter, earnings per share was $3.52.
In the reported quarter, there was an allowance build for the Walmart program agreement loss sharing termination, a Walmart program agreement termination contra revenue impact, Discover integration expenses and an FDIC special assessment charge.
COF’s results were adversely impacted by higher expenses and provisions. However, an increase in net interest income, along with higher non-interest income, supported the results to some extent.
Image: Bigstock
Hercules Capital (HTGC) to Report Q2 Earnings: What's in Store?
Hercules Capital, Inc. (HTGC - Free Report) is slated to announce second-quarter 2024 results on Aug 1, after market close. While its revenues are likely to have improved in the quarter on a year-over-year basis, earnings are expected to have declined.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results were primarily aided by an increase in total investment income. Also, the balance sheet position was strong and new commitments were robust. However, a rise in operating expenses was a headwind.
Hercules Capital has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 6.5%.
Hercules Capital, Inc. Price and EPS Surprise
Hercules Capital, Inc. price-eps-surprise | Hercules Capital, Inc. Quote
Q2 Earnings & Sales Estimates
The Zacks Consensus Estimate for HTGC’s second-quarter earnings of 51 cents per share has been unchanged over the past seven days. The figure indicates a decline of 3.7% from the year-ago quarter’s reported number.
The consensus estimate for sales of $125 million suggests a 7.5% year-over-year increase.
Other Key Estimates for Q2
Given the current high-interest rate environment, HTGC is expected to have benefited from an increase in interest income (constituting more than 90% of its total investment income) in the to-be-reported quarter. The Zacks Consensus Estimate for total interest and dividend income is pegged at $119 million, suggesting a year-over-year increase of 9.2%. We expect the metric to be $116.3 million.
Hercules Capital anticipates prepayments to accelerate from the first-quarter reported level and be $200-$300 million.
Management projects interest expenses to increase sequentially due to balance sheet growth. We expect interest expenses of $18.3 million, suggesting 4% sequential growth.
The company anticipates selling, general and administrative expenses of $23-$24 million.
Earnings Whispers
Our quantitative model does not conclusively predict an earnings beat for Hercules Capital this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: HTGC has an Earnings ESP of 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Results of Finance Stocks
Evercore Inc.’s (EVR - Free Report) second-quarter adjusted earnings per share of $1.81 surpassed the Zacks Consensus Estimate of $1.66. Also, the bottom line compared favorably with the prior-year quarter’s 96 cents.
EVR’s results benefited from an increase in revenues generated from the Investment Management, and Investment Banking & Equities segments. An improvement in the assets under management balance was another positive.
Capital One’s (COF - Free Report) second-quarter 2024 adjusted earnings of $3.14 per share lagged the Zacks Consensus Estimate of $3.28. In the prior-year quarter, earnings per share was $3.52.
In the reported quarter, there was an allowance build for the Walmart program agreement loss sharing termination, a Walmart program agreement termination contra revenue impact, Discover integration expenses and an FDIC special assessment charge.
COF’s results were adversely impacted by higher expenses and provisions. However, an increase in net interest income, along with higher non-interest income, supported the results to some extent.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.