Prospect Capital (PSEC) Q4 Earnings and Revenues Miss Estimates

Prospect Capital (PSEC) delivered earnings and income surprises of -10.53% and -4.66%, respectively, for the quarter ended June 2021. Do the numbers…


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This story initially appeared on Zacks

Prospect Capital (PSEC) got here out with quarterly earnings of $0.17 per share, lacking the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.16 per share a 12 months in the past. These figures are adjusted for non-recurring objects.

This quarterly report represents an earnings shock of -10.53%. 1 / 4 in the past, it was anticipated that this enterprise improvement firm would put up earnings of $0.19 per share when it really produced earnings of $0.19, delivering no shock.

Over the past 4 quarters, the corporate has surpassed consensus EPS estimates simply as soon as.

Prospect Capital, which belongs to the Zacks Monetary – Funding Administration business, posted revenues of $157.34 million for the quarter ended June 2021, lacking the Zacks Consensus Estimate by 4.66%. This compares to year-ago revenues of $145.23 million. The corporate has topped consensus income estimates simply as soon as during the last 4 quarters.

The sustainability of the inventory’s rapid value motion based mostly on the recently-released numbers and future earnings expectations will principally rely on administration’s commentary on the earnings name.

Prospect Capital shares have added about 49.9% because the starting of the 12 months versus the S&P 500’s achieve of 19.3%.

What’s Subsequent for Prospect Capital?

Whereas Prospect Capital has outperformed the market to date this 12 months, the query that involves traders’ minds is: what’s subsequent for the inventory?

There are not any straightforward solutions to this key query, however one dependable measure that may assist traders deal with that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified recently.

Empirical analysis exhibits a powerful correlation between near-term inventory actions and tendencies in earnings estimate revisions. Traders can monitor such revisions by themselves or depend on a tried-and-tested ranking software just like the Zacks Rank, which has a formidable monitor document of harnessing the ability of earnings estimate revisions.

Forward of this earnings launch, the estimate revisions pattern for Prospect Capital was blended. Whereas the magnitude and path of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out in step with the market within the close to future. You’ll be able to see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will likely be attention-grabbing to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $0.19 on $170.09 million in revenues for the approaching quarter and $0.77 on $693.88 million in revenues for the present fiscal 12 months.

Traders ought to be conscious of the truth that the outlook for the business can have a fabric influence on the efficiency of the inventory as nicely. When it comes to the Zacks Trade Rank, Monetary – Funding Administration is at present within the prime 28% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.

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