Business development company Main Street Capital (NYSE:MAIN) will be reporting results this Thursday after the bell. Here’s what investors should know.
Main Street Capital beat analysts’ revenue expectations last quarter, reporting revenues of $145.5 million, up 3.6% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ revenue estimates.
Is Main Street 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 Main Street Capital’s revenue to grow 6% year on year, improving from the 4.1% 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 to stay the course heading into earnings. Main Street Capital has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Main Street Capital’s peers in the specialty finance segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Sixth Street Specialty Lending’s revenues decreased 19.7% year on year, missing analysts’ expectations by 9.3%, and PROG reported revenues up 11.1%, in line with consensus estimates. PROG traded up 24.1% following the results.
Read our full analysis of Sixth Street Specialty Lending’s results here and PROG’s results here.
There has been positive sentiment among investors in the specialty finance segment, with share prices up 8% on average over the last month. Main Street Capital is up 5.8% during the same time and is heading into earnings with an average analyst price target of $63.17 (compared to the current share price of $57.37).
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