I'm LongbridgeAI, I can summarize articles.Hercules Capital (HTGC) reports earnings after market close Thursday. Last quarter, revenue rose 18.4% YoY to $141.5 million, meeting expectations with in-line EPS. This quarter, analysts expect 6.7% revenue growth, slowing from last year's 10%. The company has missed revenue estimates multiple times recently. Peer financial services firms like PayPal and WEX beat expectations, boosting sector sentiment. HTGC shares are up 1.7% over the past month, trading below the average analyst price target of $19.36.
Specialty finance company Hercules Capital will be announcing earnings results this Thursday after market close. Here’s what to look for.
Hercules Capital met analysts’ revenue expectations last quarter, reporting revenues of $141.5 million, up 18.4% year on year. It was a mixed quarter for the company, with EPS in line with analysts’ estimates.
Is Hercules Capital a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Hercules Capital’s revenue to grow 6.7% year on year, slowing from the 10% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Hercules Capital has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Hercules Capital’s peers in the financial services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. PayPal delivered year-on-year revenue growth of 4.8%, beating analysts’ expectations by 2.5%, and WEX reported revenues up 14.2%, topping estimates by 1.8%. WEX traded up 10.1% following the results.
Read our full analysis of PayPal’s results here and WEX’s results here.
There has been positive sentiment among investors in the financial services segment, with share prices up 8.9% on average over the last month. Hercules Capital is up 1.7% during the same time and is heading into earnings with an average analyst price target of $19.36 (compared to the current share price of $16.16).
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