Key Takeaways
- • The eight specialty finance stocks tracked by StockStory reported a mixed Q3, with aggregate revenues missing analyst consensus estimates by 6.7%, though shares were up 3% on average since earnings.
- • Hercules Capital (NYSE: HTGC) reported Q3 revenue of $140.1 million, up 1.5% year over year and 2.3% below analyst expectations, with EPS in line; the stock fell 5% post-report to $16.05.
- • Encore Capital Group (ECPG) was the best performer, with revenue of $544.5 million, up 18.3% year over year and 16.7% above estimates, and shares up 9.4% to $109.37.
- • Farmer Mac (AGM) was the weakest performer, with revenue of $112.5 million, up 18.4% year over year but 7.3% below estimates, a significant EPS miss, and shares down 12.1% to $173.98.
- • Capital Southwest (CSWC) and Sixth Street Specialty Lending (TSLX) posted satisfactory quarters, with CSWC revenue of $67.16 million (up 17.9%, beating estimates by 2.3%) and TSLX revenue of $98.96 million (down 9.6%, beating estimates by 1.5%).
Summary
According to a TradingView review of third-quarter earnings, specialty finance stocks delivered a mixed quarter, with the eight companies tracked by StockStory reporting aggregate revenues that missed analyst consensus estimates by 6.7%. Despite the revenue shortfall, shares of the group were up 3% on average since the latest results.
Hercules Capital (NYSE: HTGC), a business development company providing debt financing to venture capital-backed and growth-stage technology and life sciences companies, reported revenue of $140.1 million, up 1.5% year over year. That figure fell 2.3% short of analyst expectations, while EPS was in line with estimates. The market reacted negatively, with the stock down 5% since reporting and trading at $16.05.
Encore Capital Group (ECPG), which purchases portfolios of defaulted consumer debt, was the standout of the group. Revenue of $544.5 million rose 18.3% year over year and beat analyst expectations by 16.7%, with a beat on both EPS and EBITDA estimates. It posted the largest analyst estimate beat among its peers, and shares rose 9.4% to $109.37.
Farmer Mac (AGM), which provides a secondary market for agricultural and rural loans, was the weakest performer. Revenue of $112.5 million grew 18.4% year over year but fell 7.3% short of estimates, and the company posted a significant EPS miss. The stock fell 12.1% since results to $173.98.
Capital Southwest (CSWC), a business development company providing debt and equity financing to middle-market companies, reported revenue of $67.16 million, up 17.9% year over year and 2.3% above expectations, with EPS in line. Shares were up 1.9% to $23.86.
Sixth Street Specialty Lending (TSLX) reported revenue of $98.96 million, down 9.6% year over year, though it topped estimates by 1.5% with EPS in line with forecasts. The stock was down 1.5% since reporting, trading at $17.64.
Hercules Capital (NYSE: HTGC), a business development company providing debt financing to venture capital-backed and growth-stage technology and life sciences companies, reported revenue of $140.1 million, up 1.5% year over year. That figure fell 2.3% short of analyst expectations, while EPS was in line with estimates. The market reacted negatively, with the stock down 5% since reporting and trading at $16.05.
Encore Capital Group (ECPG), which purchases portfolios of defaulted consumer debt, was the standout of the group. Revenue of $544.5 million rose 18.3% year over year and beat analyst expectations by 16.7%, with a beat on both EPS and EBITDA estimates. It posted the largest analyst estimate beat among its peers, and shares rose 9.4% to $109.37.
Farmer Mac (AGM), which provides a secondary market for agricultural and rural loans, was the weakest performer. Revenue of $112.5 million grew 18.4% year over year but fell 7.3% short of estimates, and the company posted a significant EPS miss. The stock fell 12.1% since results to $173.98.
Capital Southwest (CSWC), a business development company providing debt and equity financing to middle-market companies, reported revenue of $67.16 million, up 17.9% year over year and 2.3% above expectations, with EPS in line. Shares were up 1.9% to $23.86.
Sixth Street Specialty Lending (TSLX) reported revenue of $98.96 million, down 9.6% year over year, though it topped estimates by 1.5% with EPS in line with forecasts. The stock was down 1.5% since reporting, trading at $17.64.
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