A Peek at Hercules Capital's Future Earnings

Hercules Capital HTGC is gearing up to announce its quarterly earnings on Wednesday, 2024-10-30. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Hercules Capital will report an earnings per share (EPS) of $0.51.

The market awaits Hercules Capital's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings History Snapshot

The company's EPS missed by $0.00 in the last quarter, leading to a 11.73% drop in the share price on the following day.

Here's a look at Hercules Capital's past performance and the resulting price change:

Hercules Capital Share Price Analysis

Shares of Hercules Capital were trading at $20.14 as of October 28. Over the last 52-week period, shares are up 26.23%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on Hercules Capital

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Hercules Capital.

Hercules Capital has received a total of 2 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $21.75, the consensus suggests a potential 7.99% upside.

Comparing Ratings with Competitors

The below comparison of the analyst ratings and average 1-year price targets of Artisan Partners Asset, Victory Capital Holdings and StepStone Group, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• The consensus among analysts is an Sell trajectory for Artisan Partners Asset, with an average 1-year price target of $39.5, indicating a potential 96.13% upside.
• The consensus outlook from analysts is an Neutral trajectory for Victory Capital Holdings, with an average 1-year price target of $57.64, indicating a potential 186.2% upside.
• StepStone Group received a Neutral consensus from analysts, with an average 1-year price target of $58.12, implying a potential 188.58% upside.

Insights: Peer Analysis

Within the peer analysis summary, vital metrics for Artisan Partners Asset, Victory Capital Holdings and StepStone Group are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Hercules Capital ranks in the middle for consensus rating. It ranks at the bottom for revenue growth and gross profit, but at the top for return on equity among its peers.

Discovering Hercules Capital: A Closer Look

Hercules Capital Inc is a specialty finance company engaged in providing senior secured loans to high-growth, venture capital-backed companies in a variety of technology, life sciences, and sustainable and renewable technology industries. It invests majorly in structured debt with warrants and, to a lesser extent, in senior debt and equity investments. The company lends to and invests in portfolio companies in various technology-related industries including technology, drug discovery and development, biotechnology, life sciences, healthcare, and sustainable and renewable technology.

Hercules Capital: Financial Performance Dissected

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Hercules Capital's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -44.69%. This indicates a decrease in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 64.05%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Hercules Capital's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.24%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Hercules Capital's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.14%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.95, caution is advised due to increased financial risk.

To track all earnings releases for Hercules Capital visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.