Hercules Capital (HTGC) Earnings Preview: What to Expect on October 30th
The market is eagerly awaiting Hercules Capital’s upcoming quarterly earnings release, scheduled for Wednesday, October 30th. As a leading specialty finance company focused on providing senior secured loans to high-growth, venture capital-backed companies, Hercules Capital’s performance is closely watched by investors.
Analyst Expectations and Key Metrics
Analysts are projecting an earnings per share (EPS) of $0.51 for the quarter. However, the market’s attention will likely be focused on the company’s guidance for the next quarter, as this can be a significant driver of stock prices.
Earnings History and Price Movements
In the last quarter, Hercules Capital’s EPS missed estimates by $0.00, resulting in a 11.73% drop in the share price on the following day. Here’s a look at the company’s past performance and the corresponding price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—|
| Q2 2024 | $0.51 | $0.51 | -12.0% |
| Q1 2024 | $0.50 | $0.50 | 1.0% |
| Q4 2023 | $0.49 | $0.56 | 5.0% |
| Q3 2023 | $0.52 | $0.52 | -1.0% |
Analyst Sentiment and Price Targets
Analysts have assigned a total of 2 ratings to Hercules Capital, with the consensus rating being Outperform. The average one-year price target is $21.75, suggesting a potential 7.99% upside.
Competitive Analysis: Comparing Hercules Capital to its Peers
To gain further insight into Hercules Capital’s market positioning and performance expectations, it’s helpful to compare the company to its key competitors. Here’s a breakdown of analyst ratings and price targets for Artisan Partners Asset, Victory Capital Holdings, and StepStone Group:
*
Artisan Partners Asset:
Consensus rating: Sell; Average 1-year price target: $39.5 (potential 96.13% upside)*
Victory Capital Holdings:
Consensus rating: Neutral; Average 1-year price target: $57.64 (potential 186.2% upside)*
StepStone Group:
Consensus rating: Neutral; Average 1-year price target: $58.12 (potential 188.58% upside)Key Metrics and Financial Performance
Here’s a closer look at Hercules Capital’s financial performance, comparing its key metrics to industry averages:
*
Market Capitalization:
Lower than industry average, suggesting a smaller scale relative to its peers.*
Revenue Growth:
Facing challenges with a -44.69% decline in revenue as of June 30, 2024.*
Net Margin:
Below industry benchmarks, indicating potential challenges in achieving strong profitability (64.05%).*
Return on Equity (ROE):
Below industry average, suggesting challenges in efficiently using equity capital (2.24%).*
Return on Assets (ROA):
Below industry average, suggesting challenges in maximizing returns from its assets (1.14%).*
Debt Management:
Higher than industry average debt-to-equity ratio (0.95), indicating increased financial risk.Key Takeaway: Hercules Capital’s Position Within the Industry
While Hercules Capital’s revenue growth and gross profit rank below its peers, the company boasts a higher return on equity. However, its lower market capitalization and challenges in net margin, ROE, ROA, and debt management warrant careful consideration by investors.
Stay Updated on Hercules Capital’s Earnings
To stay informed about all of Hercules Capital’s earnings releases, visit their earnings calendar on our website.
