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How Will Prospect Capital Fare in 1Q18?

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Dec. 4 2020, Updated 10:53 a.m. ET

EPS numbers

Prospect Capital (PSEC) is expected to post its earnings report for fiscal 1Q18 on November 14, 2017. For fiscal 1Q18, Wall Street analysts have given a high estimate of $0.20 for earnings per share (or EPS) and a low estimate of $0.19.

Prospect Capital has generated a return of 4.1% on its assets on a last-12-month (or LTM) basis. However, peers (XLF) BlackRock Capital Investment (BKCC), Ares Capital (ARCC), and Apollo Investment (AINV) have generated returns of -0.54%, 4.5%, and 3.4%, respectively, on their assets on an LTM basis.

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For fiscal 1Q18, Wall Street analysts have given an average estimate on EPS of $0.19 for Prospect Capital. The company is expected to witness a fall in net asset value (or NAV) per share in fiscal 1Q18, which could, in turn, lead to a dividend cut. The dividend cut could cause concern from shareholders.

Expected revenues

Wall Street analysts have given a high estimate of $167.3 million for Prospect Capital’s revenues for fiscal 1Q18. Analysts have given a low estimate on revenues of $165.24 million for the same quarter.

However, Wall Street analysts have given an average estimate of $166.2 million on revenues for fiscal 1Q18. The company’s management plans to adopt multiple strategies that could positively impact Prospect’s income in the long term.

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