Business development company Main Street Capital (NYSE:MAIN) will be reporting earnings this Thursday after market close. Here’s what investors should know.
Main Street Capital missed analysts’ revenue expectations last quarter, reporting revenues of $140.1 million, up 2.2% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS 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 1.1% year on year, slowing from the 8.9% 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. 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 Q2 results, giving us a hint as to what we can expect. PROG delivered year-on-year revenue growth of 22.3%, beating analysts’ expectations by 0.8%, and Farmer Mac reported revenues up 24.9%, topping estimates by 3.4%. PROG traded down 4.7% following the results while Farmer Mac was up 3.5%.
Read our full analysis of PROG’s results here and Farmer Mac’s results here.
There has been positive sentiment among investors in the specialty finance segment, with share prices up 6.5% on average over the last month. Main Street Capital is up 9% during the same time and is heading into earnings with an average analyst price target of $57.33 (compared to the current share price of $57.02).
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