Prospect Capital Corp Fourth Quarter Earnings Sneak Peek

Prospect Capital Corp (NASDAQ:PSEC) will unveil its latest earnings on Monday, August 29, 2011. Prospect Capital Corporation 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 profit of 37 cents per share, a rise of 48% 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 36 cents. Between one and three months ago, the average estimate was unchanged, but has risen during the last month. For the year, analysts are projecting net income of $1.15 per share, a rise of 2.7% from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked profit of 27 cents per share versus a mean estimate of net income of 26 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $59.3 million in revenue this quarter, a rise of more than twofold from the year ago quarter. Analysts are forecasting total revenue of $172.2 million for the year, a rise of 51.5% from last year’s revenue of $113.6 million.

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

Key Stats:

Revenue rose in the third quarter after seeing a drop the quarter before. Revenue rose 39.5% to $54.4 million in the third quarter from the year earlier. In the second quarter, revenue fell 1043%.

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 May 27, 2011 to August 23, 2011, the stock price had fallen $2.73 (-24.1%) from $11.32 to $8.59. 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% (+59 cents) over that span. It saw one of its worst periods between August 1, 2011 and August 8, 2011 when shares fell for six-straight days, falling 22.3% (-$2.13) over that span. Shares are down $1.64 (-16%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.