Hercules Capital's Earnings Outlook
On Tuesday, February 23, Hercules Capital (NYSE:HTGC) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Sell-side analysts expect Hercules Capital's EPS to be near $0.33 on sales of $70.63 million. In the same quarter last year, Hercules Capital posted EPS of $0.4 on sales of $70.58 million.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
If the company were to report earnings in line when it publishes results Tuesday, earnings would be down 17.5%. Revenue would be up 0.08% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.32 | 0.33 | 0.36 | 0.36 |
| EPS Actual | 0.34 | 0.32 | 0.37 | 0.40 |
| Revenue Estimate | 69.28 M | 69.34 M | 70.81 M | 68.92 M |
| Revenue Actual | 70.34 M | 67.97 M | 73.62 M | 70.58 M |
Stock Performance
Shares of Hercules Capital were trading at $15.595 as of February 19. Over the last 52-week period, shares are up 4.52%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Hercules Capital is scheduled to hold the call at 17:00:00 ET and can be accessed here.
