Business development company Main Street Capital (NYSE: MAIN) will be reporting results this Thursday after market hours. Here’s what you need to know.
Main Street Capital beat analysts’ revenue expectations last quarter, reporting revenues of $149.6 million, up 3.9% year on year. It was a satisfactory quarter for the company, with EPS in line with analysts’ 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 4.6% year on year, improving from the 2.2% 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 Q3 results, giving us a hint as to what we can expect. Capital Southwest delivered year-on-year revenue growth of 17.9%, beating analysts’ expectations by 2.3%, and PROG reported revenues up 25.6%, topping estimates by 7.8%. Capital Southwest’s stock price was unchanged after the resultswhile PROG was up 13.1%.
Read our full analysis of Capital Southwest’s results here and PROG’s results here.
There has been positive sentiment among investors in the specialty finance segment, with share prices up 4.2% on average over the last month. Main Street Capital is up 2.6% during the same time and is heading into earnings with an average analyst price target of $59.86 (compared to the current share price of $56.43).
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