Prospect Capital Corp First Quarter Earnings Sneak Peek

Prospect Capital Corp (NASDAQ:PSEC) will unveil its latest earnings on Wednesday, November 9, 2011. 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 Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 26 cents per share, a decline of 7.1% 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 28 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 27 cents during the last month. Analysts are projecting profit to rise by 0% versus last year to $1.10.

Past Earnings Performance: Last quarter, the company missed estimates by 5 cents, coming in at profit of 31 cents per share versus a mean estimate of net income of 36 cents per share. In the third quarter of the last fiscal year, the company beat estimates by one cent.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

Wall St. Revenue Expectations: On average, analysts predict $54.8 million in revenue this quarter, a rise of 55.5% from the year ago quarter. Analysts are forecasting total revenue of $244.8 million for the year, a rise of 44.5% from last year’s revenue of $169.5 million.

Analyst Ratings: Analysts seem relatively indifferent about Prospect Capital with six of seven analysts surveyed maintaining a hold rating.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 66.7% to $27 million (27 cents a share) from $16.2 million (27 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 82.2% to $53.2 million from $29.2 million.

Key Stats:

The company’s revenue has risen for two straight quarters. In the third quarter of the last fiscal year, the figure rose 39.5%.

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).

Stock Price Performance: During August 10, 2011 to November 3, 2011, the stock price had risen $2.10 (28.2%) from $7.46 to $9.56. The stock price saw one of its best stretches over the last year between November 30, 2010 and December 14, 2010 when shares rose for 11-straight days, rising 6.4% (+57 cents) over that span. It saw one of its worst periods between September 15, 2011 and September 22, 2011 when shares fell for six-straight days, falling 5.7% (-50 cents) over that span. Shares are down 33 cents (-3.3%) year to date.

(Source: Xignite Financials)

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.