American Capital Earnings: Here’s Why Shares are Falling Now

American Capital, Ltd. (NASDAQ:ACAS) delivered a profit and met Wall Street’s expectations. Shares are down 1.4%.

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American Capital, Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were $0.26 in the quarter versus EPS of $0.67 in the year-earlier quarter.

Revenue: Increased over 12% to $180 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: American Capital, Ltd. reported adjusted EPS income of $0.26 per share. By that measure, the company met the mean analyst estimate of $0.26. It beat the average revenue estimate of $147.77 million.

Quoting Management: “The fourth quarter of 2012 capped an excellent year for American Capital,” said Malon Wilkus, Chairman and Chief Executive Officer. “For the year, NOI totaled $397 million, American Capital Asset Management appreciated $329 million, previously depreciated assets recovered approximately $325 million of net value, and the net value of our remaining portfolio of private finance companies grew by approximately $75 million, resulting in $1.1 billion in net earnings. These earnings were 14% higher than our prior best in 2010. Our NAV grew $3.97 per share to $17.84 per share as of December 31, 2012, increasing an impressive 29% for the year. We also originated $719 million of new investments, which we believe will generate attractive returns for our shareholders. Additionally, our highly accretive stock repurchase program continues to be an important enhancement to shareholder value.”

Key Stats (on next page)…

Revenue decreased from $280 million in the previous quarter. EPS decreased a penny from $0.27 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.25 to a profit $0.26. For the current year, the average estimate has moved up from a profit of $1.04 to a profit of $1.05 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]