2 Financial Stocks on Trading Screens Before Earnings

XL Capital Ltd. (NYSE:XL) will unveil its latest earnings on Thursday, February 9, 2012. The average estimate of analysts is for net income of 18 cents per share, a decline of 75.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 57 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 51 cents during the last month. Analysts are projecting profit to rise by 69.6% versus last year to 73 cents.

The company fell short of estimates last quarter after topping forecasts the quarter prior. In the third quarter, it reported profit of 28 cents per share against a mean estimate of 34 cents. Two quarters ago, it beat expectations by 27 cents with net income of 75 cents. On average, analysts predict $1.52 billion in revenue this quarter, a rise of 18.8% from the year ago quarter. Analysts are forecasting total revenue of $5.82 billion for the year, a rise of 15.7% from last year’s revenue of $5.03 billion.

Competitors to Watch: Arch Capital Group Ltd. (NASDAQ:ACGL), The Travelers Companies, Inc. (NYSE:TRV), PartnerRe Ltd. (NYSE:PRE), American Insurance Group (NYSE:AIG), Axis Capital Holdings Ltd. (NYSE:AXS), Montpelier Re Hldgs. Ltd. (NYSE:MRH), RenaissanceRe Hldgs. Ltd. (NYSE:RNR), Aspen Insurance Hldgs. Ltd. (NYSE:AHL).

Prospect Capital Corp (NASDAQ:PSEC) will unveil its latest earnings on Thursday, February 9, 2012. The average estimate of analysts is for profit of 29 cents per share, a decline of 23.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 28 cents. Between one and three months ago, the average estimate moved down. It has risen from 27 cents during the last month. Analysts are projecting profit to rise by 0% versus last year to $1.10.

The company is hoping to beat estimates after missing the mark for two straight quarters. Last quarter, it reported net income of 26 cents per share against an estimate of profit of 27 cents per share. The quarter before that, it missed forecasts by 5 cents. On average, analysts predict $62.6 million in revenue this quarter, a rise of 87.9% from the year ago quarter. Analysts are forecasting total revenue of $246.9 million for the year, a rise of 45.7% from last year’s revenue of $169.5 million.

Competitors to Watch: Main Street Capital Corp. (NYSE:MAIN), MCG Capital Corporation (NASDAQ:MCGC), American Capital Ltd. (NASDAQ:ACAS), Saratoga Investment Corp. (NYSE:SAR), Kohlberg Capital Corp. (NASDAQ:KCAP), Gladstone Capital Corp. (NASDAQ:GLAD), Gladstone Investment Corp. (NASDAQ:GAIN), MVC Capital, Inc. (NYSE:MVC), Ares Capital Corporation (NASDAQ:ARCC), and Equus Total Return, Inc. (NYSE:EQS).