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Horizon Technology Finance Corporation Announces Third Quarter 2021 Financial Results

– Net Investment Income per Share of $0.40; NAV per Share of $11.63 –

– Debt Portfolio Yield of 16.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} –

– Declares Regular Monthly Distributions of $0.10 per Share through March 2022 and $0.05 Special Distribution Payable in December 2021 –

– Grew Portfolio to Record $452 Million –

FARMINGTON, Conn., Oct. 26, 2021 /PRNewswire/ — Horizon Technology Finance Corporation (NASDAQ: HRZN) (“HRZN” or the “Company”), a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services, and sustainability industries, today announced its financial results for the third quarter ended September 30, 2021.

Third Quarter 2021 Highlights

  • Net investment income (“NII”) of $8.0 million, or $0.40 per share, compared to $5.9 million, or $0.34 per share for the prior-year period

  • Total investment portfolio of $452.3 million as of September 30, 2021

  • Net asset value of $237.6 million, or $11.63 per share, as of September 30, 2021

  • Annualized portfolio yield on debt investments of 16.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the quarter

  • HRZN funded 15 loans totaling $98.9 million

  • HRZN’s investment adviser, Horizon Technology Finance Management LLC (“HTFM”), originated $141.4 million through its lending platform (“Horizon Platform”), inclusive of the HRZN loans

  • Raised total net proceeds of approximately $6.6 million with “at-the-market” (“ATM”) offering program

  • Experienced liquidity events from five portfolio companies

  • Cash of $42.9 million and credit facility capacity of $121.8 million as of September 30, 2021

  • Held portfolio of warrant and equity positions in 74 companies as of September 30, 2021

  • Undistributed spillover income of $0.44 per share as of September 30, 2021

  • Subsequent to quarter end, declared monthly distributions of $0.10 per share payable in January, February and March 2022 and a special distribution of $0.05 per share payable in December 2021

“We had an excellent third quarter, as HRZN generated net investment income of $0.40 per share, significantly grew its portfolio and increased its NAV per share,” said Robert D. Pomeroy, Jr., Chairman and Chief Executive Officer of HRZN. “The momentum of the ‘Horizon’ brand and the Horizon Platform continued to accelerate, which was clearly evidenced by HRZN’s quarterly record of $99 million of originated loans. HRZN also completed five portfolio exits, leading to a debt portfolio yield of over 16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, once again among the leaders in the industry. HTFM’s predictive pricing strategy continues to generate best-in-class yields, and the power of the Horizon Platform has created a portfolio for HRZN that is the largest in its history and is producing attractive yields for HRZN’s shareholders.”

“In addition to the strong growth in its portfolio, the credit quality of HRZN’s portfolio remains very solid, with nearly 97{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of its portfolio 3-rated or better,” continued Mr. Pomeroy. “Demand for venture debt remains robust, and with HRZN’s deep committed backlog and ample capacity to originate loans on its platform, as well as HTFM’s pipeline of opportunities, HRZN is in a prime position to continue delivering compelling returns to its shareholders.”

Third Quarter 2021 Operating Results

Total investment income for the quarter ended September 30, 2021 grew 33{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $16.4 million, compared to $12.3 million for the quarter ended September 30, 2020, primarily due to growth in interest income on investments resulting from an increase in the average size of the debt investment portfolio, as well as higher fee income.

The Company’s dollar-weighted annualized yield on average debt investments for the quarter ended September 30, 2021 and 2020 was 16.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 15.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, respectively. The Company calculates the dollar-weighted annualized yield on average debt investments for any period measured as (1) total investment income (excluding dividend income) during the period divided by (2) the average of the fair value of debt investments outstanding on (a) the last day of the calendar month immediately preceding the first day of the period and (b) the last day of each calendar month during the period. The dollar-weighted annualized yield on average debt investments is higher than what investors will realize because it does not reflect expenses or any sales load paid by investors.

Total expenses for the quarter ended September 30, 2021 were $8.3 million, compared to $6.5 million for the quarter ended September 30, 2020. The increase was primarily due to a $0.5 million increase in interest expense, a $0.4 million increase in the base management fee and a $0.5 million increase in the performance based incentive fee.

Net investment income for the quarter ended September 30, 2021 was $8.0 million, or $0.40 per share, compared to $5.9 million, or $0.34 per share, for the quarter ended September 30, 2020.

For the quarter ended September 30, 2021, net realized gain on investments was $1.3 million, or $0.07 per share, compared to $1.2 million, or $0.07 per share, for the quarter ended September 30, 2020.

For the quarter ended September 30, 2021, net unrealized appreciation on investments was $3.4 million, or $0.17 per share, compared to net unrealized depreciation on investments of $10.3 million, or $0.60 per share, for the prior-year period.

Portfolio Summary and Investment Activity

As of September 30, 2021, the Company’s debt portfolio consisted of 43 secured loans with an aggregate fair value of $429.9 million. In addition, the Company’s total warrant, equity and other investments in 76 portfolio companies had an aggregate fair value of $22.4 million. Total portfolio investment activity for the three and nine months ended September 30, 2021 and 2020 was as follows:

($ in thousands)

For the Three Months Ended

September 30,

For the Nine Months Ended
September 30,

2021

2020

2021

2020

Beginning portfolio

$ 404,121

$ 355,880

$ 352,545

$ 319,551

New debt investments

98,592

16,094

217,252

121,648

Principal payments received on investments

(3,221)

(6,419)

(11,303)

(20,344)

Early pay-offs

(50,367)

(43,542)

(107,957)

(90,785)

Accretion of debt investment fees

1,016

795

3,186

3,080

New debt investment fees

(962)

(202)

(2,332)

(1,415)

Warrants received in settlement of fee income

—

—

—

978

Proceeds from sale of investments

(1,553)

(1,945)

(5,285)

(8,200)

Dividend income from controlled affiliate
investment

—

—

—

118

Net realized gain (loss) on investments

1,344

1,178

(1,882)

3,945

Net unrealized appreciation (depreciation) on
investments

3,376

(10,288)

8,122

(16,827)

Other

—

199

—

1

Ending portfolio

$ 452,346

$ 311,750

$ 452,346

$ 311,750

Portfolio Asset Quality

The following table shows the classification of HRZN’s loan portfolio at fair value by internal credit rating as of September 30, 2021, June 30, 2021 and December 31, 2020:

($ in
thousands)

September 30, 2021

June 30, 2021

December 31, 2020

Number of
Investments

Debt
Investments at
Fair Value

Percentage
of Debt
Investments

Number of
Investments

Debt
Investments at
Fair Value

Percentage
of Debt
Investments

Number of
Investments

Debt
Investments at
Fair Value

Percentage of
Debt
Investments

Credit
Rating

4

5

$ 56,337

13.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

3

$ 44,286

11.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

6

$ 77,950

23.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

3

35

359,658

83.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

32

318,448

82.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

24

240,933

72.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

2

2

11,141

2.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

4

23,080

6.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

3

12,875

3.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

1

1

2,800

0.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

—

—

1

1,737

0.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Total

43

$ 429,936

100.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

39

$ 385,814

100.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

34

$ 333,495

100.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

As of September 30, 2021, HRZN’s loan portfolio had a weighted average credit rating of 3.1, compared to 3.1 as of June 30, 2021 and 3.2 as of December 31, 2020, respectively, with 4 being the highest credit quality rating and 3 being the rating for a standard level of risk. A rating of 2 represents an increased level of risk and, while no loss is currently anticipated for a 2-rated loan, there is potential for future loss of principal. A rating of 1 represents deteriorating credit quality and high degree of risk of loss of principal.

As of September 30, 2021, there was one debt investment with an internal credit rating of 1, with a cost of $3.0 million and a fair value of $2.8 million. As of June 30, 2021 there were no debt investments with an internal credit rating of 1. As of December 31, 2020, there was one debt investment with an internal credit rating of 1, with a cost of $6.8 million and a fair value of $1.7 million.

Liquidity and Capital Resources

As of September 30, 2021, the Company had $88.1 million in available liquidity, consisting of $42.9 million in cash and money market funds, and $45.2 million in funds available under existing credit facility commitments.

As of September 30, 2021, there was $37.5 million in outstanding principal balance under our $125.0 million revolving credit facility (“Key Facility”). The Key Facility allows for an increase in the total loan commitment up to an aggregate commitment of $150.0 million. There can be no assurance that any additional lenders will make any commitments under the Key Facility.

Additionally, as of September 30, 2021, there was $65.8 million in outstanding principal balance under our $100 million senior secured debt facility with a large U.S.-based insurance company at an interest rate of 4.60{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Horizon Funding Trust 2019-1, a wholly-owned subsidiary of HRZN, previously issued $100.0 million of Asset-Backed Notes (the “Notes”) rated A+(sf) by Morningstar Credit Ratings, LLC, and backed by $141.1 million of secured loans originated by HRZN. The Notes bear interest at a fixed interest rate of 4.21{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} per annum and have a stated maturity date of September 15, 2027. As of September 30, 2021, the Notes had an outstanding principal balance of $100.0 million.

During the three months ended September 30, 2021, the Company sold 395,068 shares of common stock under its ATM offering program with Goldman Sachs & Co. LLC and B. Riley FBR, Inc. For the same period, the Company received total accumulated net proceeds of approximately $6.6 million, including $0.2 million of offering expenses, from these sales.

As of September 30, 2021, the Company’s debt to equity leverage ratio was 110{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, within the Company’s 80-120{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} targeted leverage range. The asset coverage ratio for borrowed amounts was 191{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Liquidity Events

During the quarter ended September 30, 2021, HRZN experienced liquidity events from five portfolio companies. Liquidity events for HRZN may consist of the sale of warrants or equity in portfolio companies, loan prepayments, sale of owned assets or receipt of success fees.

In July, Revinate, Inc. prepaid its outstanding principal balance of $10.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. HRZN continues to hold warrants in the company.

In August, Bardy Diagnostics, Inc. was acquired by Hill-Rom Holdings, Inc. and prepaid its outstanding principal balance of $25.0 million on its venture loan, plus interest, end-of-term payment, prepayment and success fee. HRZN also received proceeds totaling $1.2 million from the redemption of warrants it held in the company.

In September, Silk Technologies, Inc. prepaid its outstanding principal balance of $9.5 million on its venture loan, plus interest, end-of-term payment and prepayment fee. HRZN continues to hold warrants in the company.

In September, OutboundEngine, Inc. was acquired by Elm Street Technology, LLC and prepaid its outstanding principal balance of $5.9 million on its venture loan, plus interest, end-of-term payment and prepayment fee. HRZN also received proceeds totaling $0.3 million from the redemption of warrants it held in the company.

In September, HRZN received a $0.5 million success fee from its investment in Silkroad Technology, Inc.

Net Asset Value

At September 30, 2021, the Company’s net assets were $237.6 million, or $11.63 per share, compared to $205.2 million, or $11.17 per share, as of September 30, 2020, and $212.6 million, or $11.02 per share, as of December 31, 2020.

For the quarter ended September 30, 2021, net increase in net assets resulting from operations was $12.8 million, or $0.63 per share, compared to a net decrease in net assets resulting from operations of $3.3 million, or $0.19 per share, for the quarter ended September 30, 2020.

Stock Repurchase Program

On April 23, 2021, the Company’s board of directors extended the Company’s previously authorized stock repurchase program until the earlier of June 30, 2022 or the repurchase of $5.0 million of the Company’s common stock. During the quarter ended September 30, 2021, the Company did not repurchase any shares of its common stock. From the inception of the stock repurchase program through September 30, 2021, the Company has repurchased 167,465 shares of its common stock at an average price of $11.22 on the open market at a total cost of $1.9 million.

Recent Developments

On October 5, 2021, the Company funded a $2.5 million debt investment to an existing portfolio company, Branded Online, Inc.

On October 8, 2021, Getaround, Inc. prepaid its outstanding principal balance of $25.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. The Company continues to hold warrants in Getaround, Inc.

On October 12, 2021, Topia Mobility, Inc. prepaid its outstanding principal balance of $10.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. The Company continues to hold warrants in Topia Mobility, Inc.

Monthly and Special Distributions Declared in Fourth Quarter 2021

On October 22, 2021, the Company’s board of directors declared monthly distributions of $0.10 per share payable in each of January, February and March 2022 and a special distribution of $0.05 per share payable in December 2021. The following tables shows these monthly and special distributions, which total $0.35 per share:

Monthly Distributions

Ex-Dividend Date

Record Date

Payment Date

Amount per Share

December 16, 2021

December 17, 2021

January 14, 2022

$0.10

January 18, 2022

January 19, 2022

February 16, 2022

$0.10

February 17, 2022

February 18, 2022

March 16, 2022

$0.10

Total:

$0.30

Special Distribution

Ex-Dividend Date

Record Date

Payment Date

Amount per Share

November 17, 2021

November 18, 2021

December 15, 2021

$0.05

After paying distributions of $0.30 per share and earning net investment income of $0.40 per share for the quarter, the Company’s undistributed spillover income as of September 30, 2021 was $0.44 per share. Spillover income includes any ordinary income and net capital gains from the preceding tax years that were not distributed during such tax years.

When declaring distributions, the HRZN board of directors reviews estimates of taxable income available for distribution, which may differ from consolidated net income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of spillover income carried over from a given year for distribution in the following year. The final determination of taxable income for each tax year, as well as the tax attributes for distributions in such tax year, will be made after the close of the tax year.

Conference Call

The Company will host a conference call on Wednesday, October 27, 2021, at 9:00 a.m. ET to discuss its latest corporate developments and financial results. To participate in the call, please dial (877) 407-9716 (domestic) or (201) 493-6779 (international). The access code for all callers is 13724271. The Company recommends joining the call at least 5 minutes in advance. In addition, a live webcast will be available on the Company’s website atwww.horizontechfinance.com.

A webcast replay will be available on the Company’s website for 30 days following the call.

About Horizon Technology Finance

Horizon Technology Finance Corporation (NASDAQ: HRZN) is a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services, and sustainability industries. The investment objective of HRZN is to maximize its investment portfolio’s return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon Technology Finance Management LLC is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located in Portland, Maine, Austin, Texas, and Reston, Virginia. To learn more, please visit www.horizontechfinance.com.

Forward-Looking Statements

Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in HRZN’s filings with the Securities and Exchange Commission. HRZN undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Contacts:

Investor Relations:
ICR
Garrett Edson
ir@horizontechfinance.com
(860) 284-6450

Media Relations:
ICR
Chris Gillick
HorizonPR@icrinc.com
(646) 677-1819

Horizon Technology Finance Corporation and Subsidiaries
Consolidated Statements of Assets and Liabilities
(Dollars in thousands, except share and per share data)

September 30,

December 31,

2021

2020

(unaudited)

Assets

Non-affiliate investments at fair value (cost of $437,919 and $343,158, respectively)

$ 448,421

$ 343,498

Non-controlled affiliate investments at fair value (cost of $3,820 and $6,854, respectively)

2,800

7,547

Controlled affiliate investments at fair value (cost of $1,450 and $1,500, respectively)

1,125

1,500

Total investments at fair value (cost of $443,189 and $351,512, respectively)

452,346

352,545

Cash

20,817

19,502

Investments in money market funds

22,057

27,199

Restricted investments in money market funds

1,504

1,057

Interest receivable

6,397

4,946

Other assets

2,652

1,908

Total assets

$ 505,773

$ 407,157

Liabilities

Borrowings

$ 257,852

$ 185,819

Distributions payable

6,128

5,786

Base management fee payable

698

563

Incentive fee payable

2,012

975

Other accrued expenses

1,493

1,417

Total liabilities

268,183

194,560

Commitments and contingencies

Net assets

Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero
 shares issued and outstanding as of September 30, 2021 and December 31, 2020

—

—

Common stock, par value $0.001 per share, 100,000,000 shares authorized,
 20,592,640 and 19,453,821 shares issued and 20,425,175 and 19,286,356 shares outstanding as of
September 30, 2021 and December 31, 2020, respectively

21

19

Paid-in capital in excess of par

288,861

271,287

Distributable earnings

(51,292)

(58,709)

Total net assets

237,590

212,597

Total liabilities and net assets

$ 505,773

$ 407,157

Net asset value per common share

$ 11.63

$ 11.02

Horizon Technology Finance Corporation and Subsidiaries
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except share and per share data)

For the Three Months Ended

For the Nine Months Ended

September 30,

September 30,

2021

2020

2021

2020

Investment income

Interest income on investments

Interest income on non-affiliate investments

$ 14,035

$ 10,974

$ 38,965

$ 32,286

Interest income on affiliate investments

—

175

213

532

Total interest income on investments

14,035

11,149

39,178

32,818

Fee income

Prepayment fee income on non-affiliate investments

1,204

1,156

2,460

1,911

Success fee income on non-affiliate investments

1,100

—

1,100

—

Fee income on non-affiliate investments

28

23

320

1,112

Fee income on affiliate investments

—

3

12

10

Total fee income

2,332

1,182

3,892

3,033

Dividend income

Dividend income on controlled affiliate investments

—

—

—

118

Total dividend income

—

—

—

118

Total investment income

16,367

12,331

43,070

35,969

Expenses

Interest expense

3,112

2,607

8,781

7,331

Base management fee

1,997

1,616

5,595

4,865

Performance based incentive fee

2,012

1,465

5,040

4,212

Administrative fee

251

234

829

740

Professional fees

559

247

1,348

1,095

General and administrative

333

302

1,142

877

Total expenses

8,264

6,471

22,735

19,120

Net investment income before excise tax

8,103

5,860

20,335

16,849

Provision for excise tax

56

—

174

—

Net investment income

8,047

5,860

20,161

16,849

Net realized and unrealized gain (loss)

Net realized gain (loss) on non-affiliate investments

1,344

1,178

(2,372)

3,957

Net realized loss on controlled affiliate investments

—

—

—

(12)

Net realized gain (loss) on investments

1,344

1,178

(2,372)

3,945

Net realized loss on extinguishment of debt

—

—

(395)

—

Net realized gain (loss)

1,344

1,178

(2,767)

3,945

Net unrealized appreciation (depreciation) on non-affiliate
investments

3,929

(10,629)

10,314

(15,435)

Net unrealized (depreciation) appreciation on non-controlled affiliate
investments

(228)

341

(1,867)

(1,134)

Net unrealized depreciation on controlled affiliate investments

(325)

—

(325)

(258)

Net unrealized appreciation (depreciation) on investments

3,376

(10,288)

8,122

(16,827)

Net realized and unrealized gain (loss)

4,720

(9,110)

5,355

(12,882)

Net increase (decrease) in net assets resulting from operations

$ 12,767

$ (3,250)

$ 25,516

$ 3,967

Net investment income per common share

$ 0.40

$ 0.34

$ 1.02

$ 0.98

Net increase (decrease) in net assets per common share

$ 0.63

$ (0.19)

$ 1.29

$ 0.23

Distributions declared per share

$ 0.30

$ 0.30

$ 0.90

$ 0.95

Weighted average shares outstanding

20,269,813

17,245,662

19,826,790

17,111,359
Cision

Cision

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SOURCE Horizon Technology Finance Corporation

Posted on

Capital One Financial, Thermo Fisher Scientific, Aflac, DexCom and Exxon Mobil

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Chicago, IL – October 27, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Capital One Financial Corp. COF, Thermo Fisher Scientific Inc. TMO, Aflac Inc. AFL, DexCom Inc. DXCM and Exxon Mobil Corp. XOM.

Here are highlights from Tuesday’s Analyst Blog:

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The last quarter was a mixed one for the S&P 500 Index as the benchmark gained a marginal 0.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Good performances in July and August were almost offset in September’s market turmoil. Investment in S&P 500 companies with a favorable Zacks Rank that are set to beat earnings estimates should be fruitful going forward.

Robust Start to Third-Quarter Earnings

The third-quarter 2021 earnings season has picked up from where it ended in the second quarter.  Results are pretty encouraging so far despite prolonged supply-chain disruptions, a labor shortage, higher inflationary pressure and the resurgence of the Delta variant of the coronavirus.

As of Oct 22, 117 S&P 500 companies reported third-quarter results. Total earnings of these companies are up 46.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} year over year on 16.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} higher revenues with 85.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} beating EPS estimates and 73.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} surpassing revenue estimates.

At present, total third-quarter earnings of the market’s benchmark — the S&P 500 Index — are projected to jump 32.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from the same period last year on 14.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} higher revenues. This suggests a steady improvement from 26.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} earnings growth on 14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} higher revenues, estimated at the beginning of the reporting cycle.  

Favorable Impacts on Earnings Results

Earnings results of the first two quarters of this year were favorably impacted since the corresponding quarters of last year were affected by the pandemic-led lockdowns and restrictions. This was evident with 95{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} year-over-year earnings growth on 25.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} higher revenues in the second quarter and 49.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} year-over-year earnings growth on 10.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} higher revenues in first-quarter 2021.

Nevertheless, the U.S. economy started reopening partially albeit at a languid pace since the third quarter of 2020. Notwithstanding favorable comparisons with last year, third-quarter 2021 earnings estimates reflect genuine growth, climbing nearly 23{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from the pre-pandemic third-quarter of 2019.

Our Top Picks

Five big S&P 500 companies (market capital > $45 billion) are slated to release third-quarter earnings results this week. Each of these stocks carries either a Zacks Rank#1 (Strong Buy) or 2 (Buy) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank stocks here.

Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. These stocks are anticipated to appreciate after earnings releases. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Capital One Financial is primarily focused on consumer and commercial lending as well as deposit origination providing various financial products and services in the United States, the United Kingdom, and Canada. It operates through three segments: Credit Card, Consumer Banking and Commercial Banking.

The company’s Credit Card segment is likely to continue showing strength. In the first half of 2021, Domestic Card, which accounted for 92.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the Credit Card net revenues, reflected robust loans held for investment balance.

This Zacks Rank #2 company has an Earnings ESP of +4.66{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. It has an expected earnings growth rate of more than 100{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the current year. The Zacks Consensus Estimate for current-year earnings improved 1.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} over the last 30 days. It recorded earnings surprises in the last four reported quarters, with an average beat of 92.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The company is set to release earnings results on Oct 26, after the closing bell.

Thermo Fisher Scientific delivered a strong performance in the first half of 2021 banking on accelerated growth in Base business. Solid end-market growth was driven by robust fundamentals in the life sciences, strong economic activity globally and the role this industry is playing in the pandemic response.

Thermo Fisher is currently expanding its bioproduction purification resin capacity, which is used in the mRNA manufacturing process. In Biosciences business, it launched several new products, including two instruments to advance cell analysis- the Invitrogen Bigfoot Spectral Sorter and the Invitrogen Attune CytPix Flow Cytometer.

This Zacks Rank #2 company has an Earnings ESP of +3.02{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. It has an expected earnings growth rate of 13.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} over the last 7 days. It recorded earnings surprises in the last four reported quarters, with an average beat of 10.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The company is set to release earnings results on Oct 27, before the opening bell.

Aflac continues to maintain strong risk-adjusted capital at its operating subsidiaries supported by consistent earnings and good liquidity. Its U.S segment is poised to grow from the buyout of Argus Dental and Vision and Zurich North America’s U.S. Corporate Life and Pensions (Group Benefits) business. A robust product pipeline for 2021 is likely to boost the segment’s sales.

This Zacks Rank #2 company has an Earnings ESP of +1.44{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. It has an expected earnings growth rate of 13.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} over the last 30 days. It recorded earnings surprises in the last four reported quarters, with an average beat of 19.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The company is set to release earnings results on Oct 27, after the closing bell.

DexCom made continued advancements with respect to key strategic objectives. DexCom’s slew of tie-ups and buyouts are also encouraging. A solid international foothold and a strong product portfolio bode well. Strong solvency is an added advantage.

DexCom’s FDA-cleared CGM system – the DexCom G4 Platinum has been boosting its top line. The inbuilt features of the G4 Platinum make it the most innovative system for continuous glucose monitoring in the market. In July 2021, DexCom announced the FDA’s clearance for Dexcom Partner Web APIs. The latest nod will enable approved third-party developers to integrate real-time CGM data into their digital health apps and devices.

This Zacks Rank #2 company has an Earnings ESP of +5.46{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The Zacks Consensus Estimate for current-year earnings improved 0.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} over the last 30 days. It recorded earnings surprises in the last four reported quarters, with an average beat of 32.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The company is set to release earnings results on Oct 28, after the closing bell.

Exxon Mobil made multiple world-class oil discoveries at the Stabroek Block, located off the coast of Guyana. Recently, the company raised the estimate for discovered recoverable resources from the Stabroek Block to approximately 10 billion oil-equivalent barrels.

Its bellwether status and an optimal integrated capital structure that has historically produced industry-leading returns make it a relatively lower-risk energy sector play. The integrated oil behemoth expects to reduce greenhouse gas emissions by 30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in its upstream business. During the same time frame, the firm expects to reduce flaring and methane emissions by 40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

This Zacks Rank #1 company has an Earnings ESP of +1.57{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The company has an expected earnings growth rate of more than 100{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the current year. The Zacks Consensus Estimate for current-year earnings improved 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} over the last 7 days. The company is set to release earnings results on Oct 29, before the opening bell.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Corporate Finance Institute Selects Vertical IQ to Provide Users with Industry Intelligence

Partnership will offer buyers actual-environment insights, banking skills

Printed: Oct. 27, 2021 at 5:31 AM MDT|Up to date: 3 several hours back

RALEIGH, N.C., Oct. 27, 2021 /PRNewswire/ — Company Finance Institute® (CFI), the primary world on line finance instruction platform, has selected Sector Intelligence leader Vertical IQ as the source for marketplace insights for their people.

“We constantly glimpse for ways to present our learners with useful, true-world experiences that simulate on-the-position issues,” suggests Kyle Peterdy, Vice President of the Professional Banking & Credit score Analyst Application. “Vertical IQ delivers extensive Market Intelligence for world economies and provides on-demand from customers marketplace experiences created from a banking point of view that our students can use in our programs and scenario-based mostly curriculum even though providing important actual-earth knowledge.”

Provides Lisa Dorian, CFI co-founder and CRO: “We are delighted to be partnering with the business leader in banker-unique intelligence. Vertical IQ’s sturdy and obtainable platform certainly boosts the CFI learner’s practical experience.”

CFI’s collaboration with Vertical IQ is a synergistic in shape, explains Vertical IQ co-founder and CEO Bobby Martin. “CFI presents top rated-shelf credit history and underwriting coaching. We’re happy that their college students will have entry to Vertical IQ Business Intelligence in buy to establish the skills essential to evaluate the challenges inherent to firms of all styles,” Martin notes. “Vertical IQ is honored to be in this sort of excellent organization.”

For additional information and facts on CFI, take a look at www.corporatefinanceinstitute.com.

To find out much more about Vertical IQ, pay a visit to www.verticaliq.com.

ABOUT VERTICAL IQ
Vertical IQ is a nationally acknowledged chief in Marketplace Intelligence. Effective product sales, marketing, and purchaser results groups use Vertical IQ to far better understand a prospect’s or customer’s small business problems ahead of, for the duration of, and right after conferences. Covering additional than 530 distinctive industries, 3,400 neighborhood economies, and far more than 90 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the U.S. financial system, Vertical IQ equips end users with the self-confidence and believability to make memorable to start with impressions and sustain enduring associations. Learn extra about how Readiness Wins at VerticalIQ.com.

ABOUT Company FINANCE INSTITUTE® (CFI)

CFI is the leading international on the internet finance training system. CFI has aided extra than 1 million college students across 200 nations and territories acquire the expertise and certifications wanted to pursue meaningful career advancement in finance and banking. The company’s condition-of-the-art studying platform makes it possible for consumers to quickly establish their accounting, finance, details assessment, and similar abilities, as they move through understanding paths to become entire world-course economic analysts. For far more details, stop by https://corporatefinanceinstitute.com.

See primary material:

Source Vertical IQ

The higher than press release was provided courtesy of PRNewswire. The sights, viewpoints and statements in the push release are not endorsed by Grey Media Team nor do they automatically point out or mirror individuals of Gray Media Group, Inc.

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Stock futures give back some gains after S&P 500, Dow set record highs

Inventory futures hovered below report stages on Wednesday as investors eyed a slew of much better-than-envisioned earnings results from intently viewed know-how firms.

Contracts on each and every of the S&P 500, Dow and Nasdaq traded just underneath the flat line as of 7 a.m. in New York. West Texas intermediate crude oil selling prices also pulled back again but remained close to their highest stage since 2014. Treasury yields dipped across the long finish of the curve, and the benchmark 10-year yield ticked under 1.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. 

Google’s guardian-firm Alphabet (GOOG, GOOGL) edged lessen even right after submitting 3rd-quarter revenues and earnings that topped consensus estimates, fueled by a further more increase in on the web marketing expending specially among retailers on Google Lookup. YouTube and Google Cloud profits development, nevertheless, slowed in comparison to the prior quarter. Microsoft (MSFT) posted quarterly benefits that exceeded estimates on just about each individual significant metric, aided by a different surge in the company’s closely watched cloud computing company section. 

Exterior of the mega-cap engineering providers, a amount of other firms also posted resilient earnings benefits. Twitter (TWTR) shares acquired in late investing following putting up third-quarter revenue that had been about in-line with anticipations, while Wall Street experienced braced for the firm to see identical destructive impacts from Apple’s iOS privacy update as peer social media organization Snap (SNAP) experienced documented for the identical quarter. 

And chipmaker Innovative Micro Equipment (AMD) also shipped quarterly earnings that exceeded estimates and boosted its whole-yr forecast. The firm noted that offer chain constraints have been partially inhibiting its capability to meet desire to supply Laptop and video clip-recreation console chips, however CEO Lisa Su extra during AMD’s earnings call that she believed the existing provide-aspect challenges would boost up coming year. 

The hottest batch of earnings final results helped affirm to Wall Road that a lot of companies have been equipped to operate by growing cost pressures to proceed providing estimates-topping revenue and profits. Nevertheless a lot of pundits have suggested inflationary pressures and supply chain disruptions could very last for for a longer period than formerly expected, several have advised the impacts will be insurmountable to most major businesses. 

“What we’ve got from these source chain concerns is a near-term earnings challenge. I think it is really a little something we do have to watch in the very first 50 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the 12 months,” Lori Calvasina, RBC Cash Markets chief fairness strategist, advised Yahoo Finance on Tuesday. “Earnings growth is only monitoring at 4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} or 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the initially two quarters of up coming calendar year. So businesses do have to continue to keep controlling via for the sector to continue on to transfer up.”

“But the truth is that the underlying economic backdrop simply is not stagnant,” she added. “I really just do not purchase into that stagflation argument at all.”

And on the need facet, American customers have revealed couple of symptoms of slowing their shelling out in the encounter of climbing inflation. The Conference Board said Tuesday that the share of people setting up to order properties, cars and important appliances elevated this thirty day period, even as small-expression inflation anticipations surged to a 13-yr higher. 

“The consumer’s bought tons of dollars suitable now so they never brain the reality that they are raising price ranges on us – and which is the tale suitable now,” Ryan Payne, TK, told Yahoo Finance Reside on Tuesday. “Which is why earnings are going up. You’ve got a quite price insensitive buyer, because we have acquired heaps of hard cash. Wages are likely up. And businesses can keep basically increasing their price ranges as their costs go up. And that is why we are kind of in this Goldilocks economic climate ideal now— another motive why the market’s going to keep on to climb better below.”

—

7:04 a.m. ET: Inventory futures position to a somewhat decreased open 

Here’s the place markets have been investing forward of the opening bell:

  • S&P 500 futures (ES=F): -6.75 factors (-.15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,558.5

  • Dow futures (YM=F): -31 points (-.09{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,613.00

  • Nasdaq futures (NQ=F): -33.5 factors (-.22{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,511.50

  • Crude (CL=F): -$1.25 (-1.48{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $83.40 a barrel

  • Gold (GC=F): -$2.40 (-.13{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,791.00 for every ounce

  • 10-calendar year Treasury (^TNX): -2.2 bps to generate 1.596{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

6:04 p.m. ET: Inventory futures open up tiny changed 

Here is where by marketplaces have been trading as the right away session kicked off Tuesday night:

  • S&P 500 futures (ES=F): -.5 factors (-.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,564.75

  • Dow futures (YM=F): -8 details (-.02{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,636.00

  • Nasdaq futures (NQ=F): -4.75 details (-.03{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,540.25

People walk past the New York Stock Exchange (NYSE) at Wall Street and the 'Fearless Girl' statue on March 23, 2021 in New York City. - Wall Street stocks were under pressure early ahead of congressional testimony from Federal Reserve Chief Jerome Powell as US Treasury bond yields continued to retreat. (Photo by Angela Weiss / AFP) (Photo by ANGELA WEISS/AFP via Getty Images)

Folks stroll past the New York Inventory Trade (NYSE) at Wall Road and the ‘Fearless Girl’ statue on March 23, 2021 in New York Town. – Wall Avenue shares were underneath pressure early ahead of congressional testimony from Federal Reserve Chief Jerome Powell as US Treasury bond yields ongoing to retreat. (Photograph by Angela Weiss / AFP) (Image by ANGELA WEISS/AFP via Getty Pictures)

—

Emily McCormick is a reporter for Yahoo Finance. Abide by her on Twitter

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Anti-Biden rap song ‘Let’s Go Brandon’ reaches top spot on iTunes chart

Major Common Michael McGuire (Ret.) argues there’s a ‘complete invasion’ at the southern border and Biden has spent zero federal bucks on the migrant surge. 

The anti-Biden rallying cry “Let’s Go Brandon” is having in excess of iTunes, with rapper Bryson Gray’s music poking entertaining at the president sitting down in the No. 1 place of the music service’s chart on Monday, ranking forward of pop audio superstar Adele’s latest solitary. 

“Let’s Go Brandon,” which requires many photographs at Biden concerning his chaotic Afghanistan withdrawal, cognitive skill and handling of the coronavirus, options Tyson James and Chandler Crump. 

TUCKER CARLSON: ‘LET’S GO BRANDON’ CHANTS ARE DEMONSTRATIONS OF Professional-BIDEN UNITY

Gray’s “Let’s Go Brandon” songs movie attributes the rapper in a “Make The us Wonderful Again” hat with an “Impeach Biden” t-shirt as lyrics such as “Let’s go Brandon, when you inquire thoughts they start out banning.’” 

“Glimpse at Australia that’s what coming if we do not stand up, quit complying with them taking our rights it is time to man up,” Gray claims in the strike tune. 

The three-word chant has come to be an world wide web sensation after an NBC reporter at a NASCAR Xfinity Series race incorrectly claimed that fans in the stands were being chanting “Let’s Go Brandon” pursuing a victory by driver Brandon Brown, when they were truly shouting, “F–k Joe Biden!”

Memes, jokes, and comments immediately commenced to unfold across the online posted by customers mocking NBC’s protection all through the interview.

GOP CONGRESSMAN Finishes Ground SPEECH WITH ‘LET’S GO, BRANDON’

The “F–k Joe Biden!” chants have due to the fact become well-known at huge sporting gatherings across the state as the president’s poll numbers have sagged due to inflation and other challenges, and have now been replaced in some venues with “Let’s Go Brandon” chants.

Pop star Adele couldn’t prime “Let us Go Brandon” on iTunes Monday early morning.  (Reuters)

A further music titled “Let’s Go Brandon” by Loza Alexander was No. 3 on iTunes on Monday, as the anti-Biden chant has generated two separate tunes that are equally at the moment additional well-liked than nearly anything the Apple new music provider has to present with the exception of No. 2, Adele’s “Effortless On Me.” 

Joe Biden

President Joe Biden speaks in the Condition Dining Area of the White House, Saturday, March 6, 2021, in Washington. (AP Image/Alex Brandon) (AP Newsroom)

Fox News’ Andrew Mark Miller contributed to this report. 

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UBS wealth management profits surge on back of thriving markets

UBS capitalised on the booming marketplace disorders for its affluent buyers in the 3rd quarter, with earnings at its wealth management business soaring 43 per cent.

The Swiss lender also benefited from a wave of dealmaking, with its expense financial institution escalating its pre-tax earnings 32 for every cent as opposed with a calendar year earlier, the group noted on Tuesday.

Overall, income at UBS rose 38 per cent to $2.9bn, excluding outstanding things, which was 33 for each cent over analyst estimates.

The world’s greatest prosperity manager has had a strong pandemic, with its rich consumers viewing their belongings soar thanks to the trillions of dollars central banking companies have pumped into the global economic climate.

UBS recorded its most lucrative quarter for prosperity administration, with $1.5bn of pre-tax earnings.

Ralph Hamers, who took above as chief govt of UBS just less than a 12 months in the past, reported: “Regardless of the backdrop, we have ongoing and will proceed to offer our customers with precious information and high quality execution, enabling them to navigate volatility and capture alternatives.”

Hamers said he would set out his vision for the group in a strategic update following February. One of the major planks of his new technique would be a electronic wealth supervisor for mass affluent customers in the US, which could launch as early as subsequent yr, Hamers extra.

“Affluent clients will get entry to a digital offering that generates in just their have profile and hazard urge for food the finest portfolio of investments and to the extent they want to make changes . . . they can get access to a distant adviser,” he claimed.

The launch would attract UBS more into direct levels of competition with the likes of Morgan Stanley, which is also targeting shoppers with concerning $250,000 and $2m of assets. UBS by now has all around 2m US buyers in that selection.

UBS documented an 11 for every cent calendar year-on-yr maximize in revenues in its expenditure bank for the 3rd quarter, excluding excellent objects, with its advisory and money markets organizations executing strongly.

By comparison, the major US financial commitment banking institutions documented an average of 19 for each cent bigger revenues in their third-quarter effects previously this month.

UBS’s investing company lagged driving US peers, with equities revenues up 24 for each cent and set-earnings revenues slipping 32 for every cent, 12 months on 12 months.

3 months in the past, UBS documented its most effective second quarter ever, with a 63 per cent rise in earnings on the again of buoyant marketplaces and a growth in mergers and acquisitions.

On Monday, UBS mentioned it would offer its Spanish prosperity management company, acknowledged as UBS Gestion, to Madrid-primarily based Singular Bank, operate by previous Santander chief executive Javier Marin.

UBS did not give a value for the deal, which it hopes to conclude in the third quarter of up coming year.

While the offer will contain all community personnel and consumers relocating to Singular, it does not incorporate UBS’s asset administration and expenditure banking organization in Spain.

The financial institution has repurchased $2bn of shares this yr with a further $600m of buybacks predicted in the last quarter, immediately after it strengthened its equilibrium sheet in the course of the pandemic. Its main fairness tier just one money ratio — a critical evaluate of economic power — rose to 14.9 per cent, ahead of the bank’s 13 per cent concentrate on.

UBS is awaiting the consequence of numerous unresolved legal scenarios. A ruling about its attraction in opposition to a €4.5bn courtroom final decision in France for facilitating tax fraud is owing in December. A parallel situation is also beneath investigation by Belgian authorities. UBS has $2bn established aside to cope with envisioned lawful expenditures.

“We would hope much larger yearly buybacks to be verified with full-year success, after the French tax situation is fixed on December 13,” reported Andrew Coombs, an analyst at Citigroup.

Hamers is becoming investigated by a Dutch court for his role in a funds-laundering scandal in the course of his time at ING. He has denied wrongdoing.

UBS shares rose 2.5 for each cent in early buying and selling on Tuesday to SFr16.76, additional than double their cost at the get started of the coronavirus pandemic very last March.