Hercules Capital (NYSE:HTGC) is gearing up to announce its quarterly earnings on Thursday, 2025-10-30. 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 $0.48.
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.
Historical Earnings Performance
Last quarter the company beat EPS by $0.03, which was followed by a 2.08% increase in the share price the next day.
Here's a look at Hercules Capital's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.47 | 0.46 | 0.50 | 0.51 |
| EPS Actual | 0.50 | 0.45 | 0.49 | 0.51 |
| Price Change % | 2.00 | -1.00 | 1.00 | -1.00 |
Stock Performance
Shares of Hercules Capital were trading at $18.05 as of October 28. Over the last 52-week period, shares are down 10.1%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.
Analyst Insights on Hercules Capital
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Hercules Capital.
The consensus rating for Hercules Capital is Outperform, derived from 4 analyst ratings. An average one-year price target of $21.0 implies a potential 16.34% upside.
Peer Ratings Comparison
The analysis below examines the analyst ratings and average 1-year price targets of Federated Hermes, Victory Capital Holdings and WisdomTree, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Federated Hermes, with an average 1-year price target of $52.6, suggesting a potential 191.41% upside.
- Analysts currently favor an Neutral trajectory for Victory Capital Holdings, with an average 1-year price target of $74.0, suggesting a potential 309.97% upside.
- Analysts currently favor an Neutral trajectory for WisdomTree, with an average 1-year price target of $13.5, suggesting a potential 25.21% downside.
Peer Analysis Summary
Within the peer analysis summary, vital metrics for Federated Hermes, Victory Capital Holdings and WisdomTree are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Artisan Partners Asset | Neutral | 4.41% | $116.87M | 16.68% |
| Federated Hermes | Neutral | 5.53% | $279.97M | 7.93% |
| Victory Capital Holdings | Neutral | 59.92% | $247.77M | 2.55% |
| WisdomTree | Neutral | 5.22% | $58.54M | 5.76% |
Key Takeaway:
Hercules Capital ranks in the middle for Consensus rating among its peers. It ranks at the bottom for Revenue Growth. It is at the top for Gross Profit. It is at the top for Return on Equity.
About Hercules Capital
Hercules Capital Inc is a specialty finance company that provides senior secured loans to high-growth, venture capital-backed companies in various 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.
Financial Insights: Hercules Capital
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Hercules Capital's remarkable performance in 3 months is evident. As of 30 June, 2025, the company achieved an impressive revenue growth rate of 60.25%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 75.34%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Hercules Capital's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 3.8%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.9%, the company showcases effective utilization of assets.
Debt Management: Hercules Capital's debt-to-equity ratio is below the industry average. With a ratio of 0.97, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
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.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
