NYSE$HTGC

Hercules Capital Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Hercules Capital reported record fourth quarter and full-year 2019 financial results.

Hercules Capital achieved record financial results for FY 2019, including total new debt and equity commitments, total gross fundings, total investment income, net investment income, total investment assets, and total debt investments. In Q4 2019, the company achieved record net investment income of $40.1 million, or $0.38 per share, and total investment income of $70.6 million.

  • Record Net Investment Income “NII” of $40.1 million, or $0.38 per share, an increase of 31.1% year-over-year
  • Total Investment Income of $70.6 million, an increase of 24.1% year-over-year
  • New debt and equity commitments of $283.9 million, an increase of 13.8% year-over-year
  • Q4 gross fundings of $240.8 million

Headline financials

Total Revenue

$70.6M

Previous: $56.9M+24.1%
EPS (adj)

$0.40

Previous: $0.35+14.3%
Gross Fundings

$241M

No prior period
Available Liquidity

$236M

No prior period
Net GAAP Leverage

115.0%

No prior period
Net Regulatory Leverage

101.8%

No prior period
Net Income

$40.1M

No prior period
Cash & Equivalents

$64.4M

No prior period
Total Assets

$2.46B

No prior period

Revenue & EPS history

Hercules Capital · Revenue · Quarterly

$70.6M

Q4 2019+24.1%vs Q4 2018
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

Hercules Capital is confident in its portfolio, reflecting a rigorous credit-driven investment strategy and the overall resiliency of the VC ecosystem. The company is well positioned financially with $235.5 million in available liquidity and a diversified balance sheet.

Tailwinds

  • Confidence in Hercules’ portfolio
  • Rigorous credit-driven investment strategy
  • Overall resiliency of the VC ecosystem
  • Well positioned financially with $235.5 million in available liquidity
  • Diversified balance sheet

Headwinds

  • Macro environment will undoubtedly be influenced by the upcoming U.S. presidential election
  • Macro environment will undoubtedly be influenced by the late stages of the economic cycle
  • Uncertainties surrounding the current market volatility
  • Early payoffs include $2.7M paydown on revolvers during Q4 2019.
  • Estimates are subject to change due to impact from active participation in the Company's equity ATM program and any future equity offerings.

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 Q4 2019

Historical avgQ4 2019

+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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