Hercules Capital Set to Announce Q2 Earnings with Robust Growth Outlook

Hercules Capital (HTGC) is set to release Q2 earnings on July 31, with analysts expecting EPS of $0.47 and revenue of $129.46 million. The average price target is $20.50, with an "Outperform" rating from Wall Street and a potential 28.4% upside from the current price.

Hercules Capital (HTGC) is set to release its second-quarter (Q2) earnings on July 31, with analysts expecting earnings per share (EPS) of $0.47 and revenue of $129.46 million. The average price target is $20.50, with an "Outperform" rating from Wall Street and a potential 28.4% upside from the current price.

The company, which operates in the Zacks Financial - SBIC & Commercial Industry, has a history of beating earnings estimates. In the past four quarters, it has surpassed consensus EPS estimates just once, but it has consistently topped revenue estimates. In the first quarter of 2025, Hercules Capital posted revenues of $137.46 million, surpassing the Zacks Consensus Estimate by 8.94%. However, the company's stock has lost about 5.9% since the beginning of the year, underperforming the S&P 500's gain of 8.2%.

The sustainability of the stock's immediate price movement will depend on management's commentary on the earnings call. Hercules Capital shares have shown mixed reactions in the past, with a slight recovery in aftermarket trading despite closing down. The company's stock closed down 0.79% at $18.91 but showed a slight increase of 0.42% in aftermarket trading, reaching $18.99.

Hercules Capital has a 21-year track record of consistent dividend payments and a 10.07% dividend yield. The company's net asset value per share rose to $11.84, reflecting a quarter-over-quarter growth of 2.5%. Despite these positive indicators, the substantial revenue miss may overshadow these achievements in the eyes of investors.

The company expects its Q3 core yield to be at the high end of the 12-12.5% range, with anticipated prepayments of $200-250 million. The company remains bullish on funding activity for the second half of 2025, projecting record fiscal year commitments and gross fundings.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, the Financial - SBIC & Commercial Industry is currently in the bottom 39% of the 250 plus Zacks industries.

[1] https://finance.yahoo.com/news/hercules-capital-htgc-beats-q2-220003758.html
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-hercules-capital-q2-2025-reveals-mixed-results-93CH-4164683