Prospect Capital Third Quarter Earnings Sneak Peek

Prospect Capital Corp (NASDAQ:PSEC) will unveil its latest earnings on Thursday, May 10, 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 Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 55 cents per share, a rise of more than twofold from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 28 cents. Between one and three months ago, the average estimate moved up. It has dropped from 56 cents during the last month. For the year, analysts are projecting profit of $1.43 per share, a rise of 30% from last year.

Past Earnings Performance: Last quarter, the company topped expectations by 4 cents, coming in at net income of 33 cents per share versus a mean estimate of profit of 29 cents per share. This followed two straight quarters of missing estimates.

Investing Insights: What’s the Future of Microsoft’s Stock?

Wall St. Revenue Expectations: Analysts predict a rise of more than twofold in revenue from the year-earlier quarter to $98.3 million.

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

A Look Back: In the second quarter, profit rose more than twofold to $64.5 million (59 cents a share) from $31.9 million (38 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 75% to $80.8 million from $46.2 million.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 58.9% over the last four quarters.

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 66.7% in the fourth quarter of the last fiscal year and 56% in the first quarter before increasing again in the second quarter.

Stock Price Performance: Between February 8, 2012 and May 4, 2012, the stock price rose 38 cents (3.7%), from $10.31 to $10.69. 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 7.6% (+68 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.

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

Don’t Miss These Additional Hot Stories:

Hot: Apple’s Newest Play on Touch Screen Technology>>

Why Are These Health Stocks Feeling Under the Weather?>>

Why Gold & Silver Act as Safe-Havens Today>>