Prospect Capital Corp First Quarter Earnings Sneak Peek

Prospect Capital Corporation (NASDAQ:PSEC) will unveil its latest earnings on Thursday, November 8, 2012. Prospect Capital is engaged as a financial services company that primarily lends to and invests in middle market privately-held companies. It is a closed-end investment company.

Prospect Capital Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 44 cents per share, a rise of 69.2% 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 29 cents. Between one and three months ago, the average estimate moved up. It has risen from 41 cents during the last month. Analysts are projecting profit to rise by 10.4% versus last year to $1.46.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the fourth quarter of the last fiscal year, it reported profit of 51 cents per share against a mean estimate of net income of 40 cents per share. In the third quarter of the last fiscal year, it missed forecasts by 4 cents.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

Wall St. Revenue Expectations: Analysts predict a rise of more than twofold in revenue from the year-earlier quarter to $112.6 million.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 34.7% to $36.3 million (28 cents a share) from $27 million (27 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 40.6% to $74.8 million from $53.2 million.

Stock Price Performance: Between October 29, 2012 and November 2, 2012, the stock price dropped $1.03 (-8.7%), from $11.89 to $10.86. The stock price saw one of its best stretches over the last year between December 30, 2011 and January 12, 2012, when shares rose for nine straight days, increasing 7.5% (+70 cents) over that span. It saw one of its worst periods between April 27, 2012 and May 4, 2012 when shares fell for six straight days, dropping 3.8% (-42 cents) over that span.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 75% in the second quarter of the last fiscal year and 61.4% in the third quarter of the last fiscal year before climbing again in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: With two analysts rating the stock a sell, one rating it as a buy and three rating it as a hold, there are indications of a bearish outlook.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Is AT&T’s Stock a Buy as iPhone Sales Soar?

Is LinkedIn Still a Wall Street Darling?

Should Netflix Shareholders Hope for a Buyout?