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What's in the Cards for Newtek Business (NEWT) in Q3 Earnings?

Newtek Business Services Corp. NEWT is slated to report third-quarter 2022 results on Nov 7, after market close. Its quarterly revenues and earnings are projected to have improved year over year.

In the last reported quarter, the company’s earnings outpaced the Zacks Consensus Estimate. Results reflected a decline in total investment income and higher expenses.

The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 11.4%.

Newtek Business Services Corp. Price and EPS Surprise


Newtek Business Services Corp. Price and EPS Surprise
Newtek Business Services Corp. Price and EPS Surprise

Newtek Business Services Corp. price-eps-surprise | Newtek Business Services Corp. Quote

However, the activities of the company during the third quarter seem inadequate to win analysts’ confidence. The Zacks Consensus Estimate for NEWT’s third-quarter earnings of 65 cents has been unchanged over the past 30 days. The figure suggests a year-over-year rise of 16.1%.

The Zacks Consensus Estimate for third-quarter sales of $21.87 million indicates an increase of 76.2% from the prior-year quarter’s reported number.

Factors Likely to Have Influenced Q3 Performance

In the third quarter, the central bank raised interest rates by 150 basis points, following a couple of interest rate hikes earlier during the year. Thus, supported by higher rates, NEWT is expected to have recorded an improvement in its total investment income in the to-be-reported quarter.

Overall expenses are likely to have been elevated mainly due to an increase in salaries and benefits costs, and professional fees.

Earnings Whispers

According to our proven model, it cannot be conclusively predicted whether Newtek Business will be able to beat the Zacks Consensus Estimate for earnings this time around. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Newtek Business is 0.00%.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks Worth a Look

The Zacks Consensus Estimate for Ares Capital Corporation’s ARCC current-year earnings has moved 5.2% higher over the past 30 days. Its shares have gained 7.3% in the past month. Currently, ARCC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Gladstone Investment Corporation GAIN currently sports a Zacks Rank #1. Its earnings estimates for the current fiscal year have been unchanged over the past 30 days. In the past month, GAIN’s shares have rallied 9%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ares Capital Corporation (ARCC) : Free Stock Analysis Report
Gladstone Investment Corporation (GAIN) : Free Stock Analysis Report
Newtek Business Services Corp. (NEWT) : Free Stock Analysis Report
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