NYSE$HTGC

Hercules Capital Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Announced financial results for the second quarter ended June 30, 2021.

Hercules Capital reported strong Q2 2021 results, with net investment income of $37.0 million, total investment income of $69.6 million, and new debt and equity commitments totaling $440.8 million. The company's NAV per share increased to $11.71, and it maintained a strong liquidity position of $610.0 million.

  • Net Investment Income (NII) of $37.0 million, or $0.32 per share, a 3.6% year-over-year increase.
  • Total Investment Income of $69.6 million, up 2.3% year-over-year.
  • Total gross new debt and equity commitments reached $440.8 million.
  • Available liquidity stood at $610.0 million.

Headline financials

Total Revenue

$69.6M

Previous: $68M+2.3%
EPS (adj)

$0.32

Previous: $0.32+0.0%
Gross Fundings

$279M

Previous: $132M+110.7%
Available Liquidity

$610M

Previous: $511M+19.4%
Net GAAP Leverage

87.7%

Previous: 110.0%-20.3%
Net Regulatory Leverage

83.8%

Previous: 100.5%-16.6%
Net Income

$37M

No prior period
Operating Income

$37M

No prior period
Cash & Equivalents

$18.4M

Previous: $35.9M-48.7%

Revenue & EPS history

Hercules Capital · Revenue · Quarterly

$69.6M

Q2 2021+2.3%vs Q2 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Hercules Capital did not provide specific financial guidance for future periods in the Q2 2021 earnings report. The company focused on its strong performance, strategic growth plans, and the favorable market conditions benefiting its portfolio companies.

Tailwinds

  • Strong liquidity position to fund disciplined growth strategy.
  • Net debt portfolio growth of nearly $57 million.
  • Highest internal credit rating in company history.
  • Record levels of new debt and equity commitments.
  • Technology and life sciences portfolio companies benefitting from multiple ways to raise new capital or achieve liquidity events.

Headwinds

  • No specific financial guidance provided.
  • Elevated repayment activities.
  • Potential impact from active participation in the Company's equity ATM program and any future equity offerings.
  • Unfunded commitments and contingencies consist primarily of unused commitments to extend credit in the form of loans to select portfolio companies.
  • Unfunded contractual commitments do not necessarily represent future cash requirements.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.7%

Avg return

Earnings day

+0.7%

Avg return

5 days after

-3.1%

Avg return

30 days after

62%

28 / 45 earnings

Positive

+9.8%

Q1 2020

Best reaction

-15.5%

Q1 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.4%-3.2%-7.8%
Q4 2025-3.0%-4.1%-15.1%
Q3 2025-1.5%+1.2%+1.4%
Q1 2025-1.1%-3.0%-1.0%
Q4 2024+1.0%+4.5%-12.1%
Q3 2024-1.2%-4.3%-5.3%
Q2 2024-12.8%-14.5%-11.1%
Q1 2024+0.7%+2.4%+2.3%
Q4 2023+6.1%+5.4%+3.1%
Q3 2023+0.2%-0.4%-2.8%
Q2 2023+4.5%+0.5%-3.6%
Q1 2023+1.5%+3.1%+13.9%
Q4 2022+7.7%+3.4%-21.1%
Q3 2022+1.9%+2.8%-3.4%
Q2 2022+4.1%+2.7%-4.3%
Q1 2022+0.2%-6.9%-18.6%
Q4 2021-1.2%-0.4%-0.4%
Q3 2021+1.1%+2.4%-5.2%
Q2 2021-0.6%+0.6%-1.7%
Q1 2021+0.5%+1.3%-2.0%
Q4 2020+2.8%+1.7%+1.7%
Q3 2020+0.6%+5.7%+22.3%
Q2 2020+2.2%+7.7%+3.8%
Q1 2020+9.8%+10.8%+17.7%
Q4 2019+5.1%-1.1%-47.6%
Q3 2019+2.8%+4.5%+4.3%
Q2 2019+2.6%+0.8%+1.2%
Q1 2019+6.0%+5.4%-1.3%
Q4 2018+5.9%+6.7%-6.3%
Q3 2018-0.6%+1.0%-3.0%
Q2 2018+0.7%+1.1%+0.4%
Q1 2018+0.0%+2.4%+0.7%
Q4 2017-0.9%-2.1%-2.8%
Q3 2017+7.3%+9.0%+7.2%
Q2 2017-4.3%-0.9%-7.0%
Q1 2017-15.5%-16.2%-14.9%
Q4 2016-2.0%-4.0%-4.0%
Q3 2016-4.6%-2.4%+0.2%
Q2 2016+1.4%+3.9%+2.1%
Q1 2016-0.2%
Q4 2015+6.3%
Q3 2015+2.5%
Q2 2015+6.3%
Q1 2015-4.2%
Q4 2014-6.9%

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