How Will Prospect Capital Fare in 1Q18?

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.

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.

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.