Workflow
New Mountain Finance (NMFC) Expected to Beat Earnings Estimates: Should You Buy?

Core Viewpoint - New Mountain Finance (NMFC) is anticipated to report a year-over-year decline in earnings due to lower revenues, which could significantly influence its near-term stock price depending on how actual results compare to consensus estimates [1][2]. Earnings Expectations - The earnings report is scheduled for July 31, 2024, with expectations of quarterly earnings at $0.36 per share, reflecting a year-over-year decrease of 7.7% [3][4]. - Revenues are projected to be $90.25 million, down 5.5% from the same quarter last year [4]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [5]. - The Most Accurate Estimate for NMFC is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.56%, suggesting a bullish outlook from analysts [11]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of a potential earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [9]. - NMFC currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [12][13]. Historical Performance - In the last reported quarter, NMFC was expected to post earnings of $0.39 per share but delivered $0.36, resulting in a surprise of -7.69% [14]. - Over the past four quarters, NMFC has only beaten consensus EPS estimates once [15]. Conclusion - NMFC is viewed as a compelling candidate for an earnings beat, but investors should consider additional factors before making investment decisions [18].