First Eagle Alternative (FCRD) third quarter earnings and revenue beat estimates
First Eagle Alternative (FCRD) exited with quarterly earnings of $0.13 per share, beating Zacks consensus estimate of $0.12 per share. That compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents a profit surprise of 8.33%. A quarter ago, this business development company was expected to post a profit of $0.10 per share when it was actually producing a profit of $0.10, unsurprisingly.
In the past four quarters, the company has exceeded consensus EPS estimates only once.
The sustainability of the immediate stock price movement based on recently released numbers and future earnings forecasts will primarily depend on management’s comments on the earnings call.
First Eagle shares are down about 10.5% year-to-date versus a -20.1% decline for the S&P 500.
What’s next for First Eagle?
With First Eagle outperforming the market so far this year, the question on investors’ minds is: what’s next for the stock?
There are no easy answers to this key question, but one reliable metric that can help investors answer it is the company’s earnings outlook. This includes not only the current consensus earnings expectations for the upcoming quarter(s), but also how those expectations have changed recently.
Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Prior to this earnings release, the trend in estimate revisions for First Eagle is mixed. While the magnitude and direction of estimate revisions may change following the release of the company’s earnings report, the current situation translates into a Zacks No. 3 (hold) ranking for the stock. Thus, the shares should move in line with the market in the near future. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how the estimates for the next few quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.12 on $9.48 million in revenue for the upcoming quarter and $0.43 on $32.58 million in revenue for the current fiscal year.
Investors should be aware that the outlook for the sector can also have a significant impact on stock performance. In terms of Zacks industry ranking, Financial – SBIC & Commercial Industry is currently in the top 7% of Zacks 250+ industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.
Another stock in the same sector, Gladstone Capital (GLAD), has yet to report results for the quarter ending September 2022. Results are expected to be released on November 14.
This real estate investment trust is expected to post quarterly earnings of $0.21 per share in its next report, representing a +5% year-over-year change. The consensus EPS estimate for the quarter remained unchanged for the past 30 days.
Gladstone Capital’s revenue is expected to be $16.05 million, up 11.8% from the year-ago quarter.
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First Eagle Alternative Capital BDC, Inc. (FCRD): Free Stock Analysis Report
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