Prospect Capital Earnings: Double-Digit Growth Again

Prospect Capital Corporation (NASDAQ:PSEC) reported higher profit for the first quarter as total investment income showed growth. 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.

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Prospect Capital Corporation Earnings Cheat Sheet

Results: Net Investment Income for Prospect Capital Corporation rose to $74 million (46 cents per share) vs. $27.9 million (26 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.

Total Investment Income: Rose more than twofold to $123.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Prospect Capital Corporation beat the mean analyst estimate of 44 cents per share. It beat the average revenue estimate of $98.3 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 67.9%, with the biggest boost coming in the most recent quarter when revenue rose more than twofold from the year earlier quarter.

The company has beaten estiamtes for two quarters in a row. In the fourth quarter of the last fiscal year, it topped expectations with net income of 51 cents versus a mean estimate of net income of 40 cents per share.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the second quarter has moved up from 29 cents a share to 40 cents over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $1.17 per to share to $1.44.

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

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