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What's in the Cards for TriplePoint (TPVG) in Q3 Earnings?

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TriplePoint Venture Growth BDC Corp.TPVG is slated to announce third-quarter 2018 results on Oct 31, after the market opens. Its revenues and earnings for the to-be-reported quarter are projected to grow year over year.

In the last reported quarter, the company's earnings surpassed the Zacks Consensus Estimate. Results benefited from an increase in investment and other income, partly offset by higher expenses.

The company has a decent earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in two out of the trailing four quarters, the average beat being 7.1%.

TriplePoint Venture Growth BDC Corp. Price and EPS Surprise

TriplePoint Venture Growth BDC Corp. Price and EPS Surprise | TriplePoint Venture Growth BDC Corp. Quote

However, activities of the company in the third quarter were inadequate to win analysts' confidence. As a result, the Zacks Consensus Estimate for earnings of 50 cents for the to-be-reported quarter remained unchanged over the past seven days. Nevertheless, it reflects a year-over-year improvement of 85.2%.

Further, the Zacks Consensus Estimate for sales for the third quarter is pegged at $19.9 million, which reflects nearly 90.8% year-over-year growth.

Looking at its price performance, shares of the company have lost 12.3% over the past year compared with 4.9% decline recorded by the industry .

Will the stock price performance improve post Q3 earnings? To a great extent, it depends on whether the company will be able to beat estimates this time around.

Before we take a look at what our quantitative model predicts for the third quarter, let's check the factors that are likely to impact Q3 results.

Factors to Influence Q3 Results

Given the expectation of higher prepayment activity during the third quarter, total investment and other income is likely to be positively impacted.

However, the company has been witnessing higher expenses over the past several quarters. Expenses increased nearly 9% year over year during the first half of 2018. Moreover, as the company continues to invest in the venture growth stage companies, operating expenses are likely to remain elevated.

Here is what our quantitative model predicts:

According to our quantitative model, it cannot be conclusively predicted whether TriplePoint will be able to beat the Zacks Consensus Estimate in the third quarter. This is because it doesn't have the right combination of the two key ingredients - a positive Earnings ESP and Zacks Rank #3 (Hold) or better - to be confident of an earnings surprise call.

You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Earnings ESP : TriplePoint has an Earnings ESP of 0.00%.

Zacks Rank : TriplePoint currently carries a Zacks Rank #3. While this increases the predictive power of ESP, we also need a positive Earnings ESP to be sure of an earnings beat.

Stocks to Consider

A few better-ranked stocks from the finance space are mentioned below.

Bank of Commerce Holdings' BOCH Zacks Consensus Estimate for the current year has been revised 4.5% upward over the past 60 days. The stock currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Ares Capital Corporation's ARCC Zacks Consensus Estimate for the current-year has remained unchanged over the past 60 days. The stock currently has a Zacks Rank #2 (Buy).

Garrison Capital Inc. GARS also has a Zacks Rank of 2. Its earnings estimates for the current year have remained unchanged over the past 60 days.

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Bank of Commerce Holdings (CA) (BOCH): Free Stock Analysis Report

TriplePoint Venture Growth BDC Corp. (TPVG): Free Stock Analysis Report

Garrison Capital Inc. (GARS): Free Stock Analysis Report

Ares Capital Corporation (ARCC): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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