Earnings Preview: American Capital

| About: American Capital (ACAS)

American Capital, Ltd. (ACAS) is scheduled to report its Q2 2012 results on July 31, 2012, before market opens. The street expects EPS and revenue of $0.21 and $138.76M, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from ACAS and the news from its closest competitors.

American Capital, Ltd. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

In the last quarter it reported $0.14 EPS, failing to meet analyst estimates of $0.19.

American Capital, Ltd. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.21 based on 9 analysts' estimates, just above $0.20 from a year ago. Revenue estimates are $138.76M, down from $142.00M a year ago. The median target price by analysts for the stock is $10.50.

Average recommendation: Overweight

Source: Marketwatch

Latest News

  • On July 19, 2012, American Capital, Ltd. announced that it plans to refinance virtually all of its existing recourse debt with two new senior secured credit facilities (the "Facilities"). Proceeds of the Facilities will also be used for working capital and general corporate purposes. J.P. Morgan Securities LLC will be joint lead arranger and joint bookrunner on the transaction.
  • On June 28, 2012, American Capital, Ltd. announced that in the second quarter of 2012, it made open market purchases of 9.1 million shares of American Capital common stock, or 2.8% of the Company's outstanding shares as of March 31, 2012. The shares were purchased at an average price of $9.34 per share, totaling $85.4 million.
  • On March 13, 2012, American Capital Ltd. announced that it has invested $11.7 million, $20 million together with its affiliates, in the debt and equity of portfolio company Halt Medical, Inc., a medical device company focused on women's health.
  • On February 16, 2012, American Capital Ltd. announced that its portfolio company Aptara, Inc. (Aptara) was sold to iEnergizer for $144 million on February 7. American Capital and its affiliated funds received $134 million in proceeds, subject to post-closing adjustments, of which approximately $108 million was received by American Capital.


Apollo Investment Corporation (AINV), MCG Capital Corporation (MCGC), and Prospect Capital Corporation (PSEC) are considered competitors for American Capital and the table below provides the key metrics for these companies and the industry.

American Capital, Ltd. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

ACAS Chart

ACAS data by YCharts

Technical Overview

The stock has a market capitalization of $3.23B and is currently trading at $9.70 with a 52 week range of $5.98 - $10.30. The stock's year-to-date performance has been 44.13%. It is currently trading above 50 and 200 SMA, but below 20 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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Tagged: , Asset Management, Alternative Investing, Earnings
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