Main Street Capital (NYSE:MAIN) Releases Earnings Results, Misses Estimates By $0.03 EPS

Main Street Capital (NYSE:MAIN) posted its earnings results on Thursday. The financial services provider reported $0.89 earnings per share for the quarter, missing analysts’ consensus estimates of $0.92 by ($0.03), Zacks reports. The company had revenue of $142.53 million during the quarter, compared to the consensus estimate of $145.67 million. Main Street Capital had a net margin of 76.98% and a return on equity of 11.56%.

Main Street Capital Stock Performance

Shares of NYSE:MAIN traded up $0.11 during midday trading on Friday, reaching $56.93. The company had a trading volume of 498,991 shares, compared to its average volume of 477,730. Main Street Capital has a 52-week low of $48.95 and a 52-week high of $65.23. The company’s 50 day moving average price is $55.53 and its 200 day moving average price is $55.41. The company has a current ratio of 0.05, a quick ratio of 0.05 and a debt-to-equity ratio of 0.11. The stock has a market cap of $5.32 billion, a P/E ratio of 14.69 and a beta of 0.73.

Main Street Capital Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Monday, March 15th. Investors of record on Monday, March 8th will be issued a $0.27 dividend. This represents a $3.24 dividend on an annualized basis and a dividend yield of 5.7%. The ex-dividend date of this dividend is Monday, March 8th. Main Street Capital’s payout ratio is 64.11%.

More Main Street Capital News

Here are the key news stories impacting Main Street Capital this week:

• Positive Sentiment: Main Street raised its monthly dividend to $0.11 per share, a shareholder-friendly move that may support the stock’s appeal to income investors. Main Street Capital declares $0.11 dividend
• Positive Sentiment: One report said GAAP profit was $1.25 per share, 11.9% above analysts’ expectations, providing a brighter counterpoint to the shortfall in recurring investment income. Main Street Capital reports Q3 sales below estimates
• Neutral Sentiment: Management’s results were described as within preliminary estimates, which may temper the impact of the quarterly misses. The company’s earnings-call transcript is available, but the supplied coverage does not detail further guidance or commentary. Main Street Capital Q3 earnings miss but fall within preliminary estimates
• Negative Sentiment: Net investment income was $0.89 per share, below analyst estimates, and revenue of $142.5 million fell short of the $145.7 million consensus. Revenue grew only 1.9% year over year, while net investment income was down from $0.97 per share a year earlier. These results could weigh on expectations for the company’s ongoing earnings power. Main Street Capital Q3 earnings and revenues miss estimates

Insider Buying and Selling

In related news, CAO Ryan Mchugh bought 2,550 shares of the company’s stock in a transaction on Thursday, August 13th. The shares were purchased at an average cost of $59.05 per share, for a total transaction of $150,577.50. Following the completion of the purchase, the chief accounting officer directly owned 22,647 shares in the company, valued at $1,337,305.35. The trade was a 12.69% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Corporate insiders own 3.83% of the company’s stock.

Wall Street Analyst Weigh In

MAIN has been the subject of a number of analyst reports. Zacks Research raised Main Street Capital from a “strong sell” rating to a “hold” rating in a research report on Monday, July 20th. Weiss Ratings upgraded Main Street Capital from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, September 3rd. Citigroup reaffirmed a “market outperform” rating on shares of Main Street Capital in a report on Monday, August 10th. Wells Fargo & Company upgraded shares of Main Street Capital from an “equal weight” rating to an “overweight” rating and upped their target price for the stock from $55.00 to $60.00 in a research note on Tuesday, September 29th. Finally, UBS Group lowered their target price on shares of Main Street Capital from $62.00 to $57.00 and set a “neutral” rating for the company in a report on Friday, October 9th. Five analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $61.00.

Main Street Capital Company Profile

Main Street Capital Corporation is a business development company that provides customized debt and equity financing to privately held businesses. The company primarily invests in lower middle-market companies and also makes private loan investments in larger middle-market businesses.

Its investment activities include first-lien, second-lien and subordinated debt, as well as equity investments and other securities. Main Street seeks to provide flexible, long-term capital to support acquisitions, recapitalizations, growth initiatives and other corporate financing needs.