Goldman Sachs BDC’s (GSBD - Free Report) second-quarter 2020 net investment income of 45 cents per share came in line with the Zacks Consensus Estimate. The bottom-line figure fell 4.3% from the year-ago figure.
The company’s second-quarter results were unfavorably impacted by lower total investment income. Also, decrease in net asset value and decline in investment portfolio were headwinds. However, a drop in operating expenses acted as a positive.
Net investment income came in at $18.2 million compared with the prior-year quarter’s $19.1 million.
Total Investment Income Declines, Expenses Down
Total investment income was $30.6 million, down 20.3% from the year-ago quarter. Lower dividend and interest income resulted in this decline. The top-line figure also lagged the Zacks Consensus Estimate of $31.3 million.
Total expenses declined 24.9% year over year to $14.2 million. Lower interest and debt expenses mainly led to the decline.
The fair value of Goldman Sachs BDC’s total investment portfolio was $1.42 billion as of Jun 30, 2020.
Balance Sheet Position
As of Jun 30, 2020, Goldman Sachs BDC’s net asset value (NAV) was $15.14 per share compared with $16.75 as of Dec 31, 2019.
As of Jun 30, 2020, the company had $918.5 million of total principal amount of debt outstanding, comprising $403.5 million of outstanding borrowings under its senior secured revolving credit facility, $155 million of unsecured convertible notes and $360 million of unsecured notes.
Also, Goldman Sachs BDC had $391.7 million of availability under its senior secured revolving credit facility, and $105.8 million in cash and cash equivalents.
Our Take
Steady improvement in total investment income and strong origination volume are anticipated to support this Zacks Rank #3 (Hold) company’s bottom-line growth. Moreover, controlled expenses are a tailwind. Nevertheless, decline in NAV is a major drag.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Finance Stocks
LendingTree (TREE - Free Report) recorded second-quarter 2020 adjusted net income per share of 46 cents, missing the Zacks Consensus Estimate of 61 cents. Further, the figure came in lower than the prior-year quarter’s $1.18 per share.
First Horizon National Corporation (FHN - Free Report) delivered second-quarter 2020 adjusted earnings per share of 20 cents, missing the Zacks Consensus Estimate of 21 cents. The bottom-line figure was also 52.4% lower than the year-ago figure.
BOK Financial (BOKF - Free Report) reported a negative earnings surprise of 21.4% for the June-end quarter. Earnings per share of 92 cents lagged the Zacks Consensus Estimate of $1.17. In addition, the bottom line compared unfavorably with the prior-year quarter’s $1.93.
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Goldman Sachs BDC’s (GSBD - Free Report) second-quarter 2020 net investment income of 45 cents per share came in line with the Zacks Consensus Estimate. The bottom-line figure fell 4.3% from the year-ago figure.
The company’s second-quarter results were unfavorably impacted by lower total investment income. Also, decrease in net asset value and decline in investment portfolio were headwinds. However, a drop in operating expenses acted as a positive.
Net investment income came in at $18.2 million compared with the prior-year quarter’s $19.1 million.
Total Investment Income Declines, Expenses Down
Total investment income was $30.6 million, down 20.3% from the year-ago quarter. Lower dividend and interest income resulted in this decline. The top-line figure also lagged the Zacks Consensus Estimate of $31.3 million.
Total expenses declined 24.9% year over year to $14.2 million. Lower interest and debt expenses mainly led to the decline.
The fair value of Goldman Sachs BDC’s total investment portfolio was $1.42 billion as of Jun 30, 2020.
Balance Sheet Position
As of Jun 30, 2020, Goldman Sachs BDC’s net asset value (NAV) was $15.14 per share compared with $16.75 as of Dec 31, 2019.
As of Jun 30, 2020, the company had $918.5 million of total principal amount of debt outstanding, comprising $403.5 million of outstanding borrowings under its senior secured revolving credit facility, $155 million of unsecured convertible notes and $360 million of unsecured notes.
Also, Goldman Sachs BDC had $391.7 million of availability under its senior secured revolving credit facility, and $105.8 million in cash and cash equivalents.
Our Take
Steady improvement in total investment income and strong origination volume are anticipated to support this Zacks Rank #3 (Hold) company’s bottom-line growth. Moreover, controlled expenses are a tailwind. Nevertheless, decline in NAV is a major drag.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Finance Stocks
LendingTree (TREE - Free Report) recorded second-quarter 2020 adjusted net income per share of 46 cents, missing the Zacks Consensus Estimate of 61 cents. Further, the figure came in lower than the prior-year quarter’s $1.18 per share.
First Horizon National Corporation (FHN - Free Report) delivered second-quarter 2020 adjusted earnings per share of 20 cents, missing the Zacks Consensus Estimate of 21 cents. The bottom-line figure was also 52.4% lower than the year-ago figure.
BOK Financial (BOKF - Free Report) reported a negative earnings surprise of 21.4% for the June-end quarter. Earnings per share of 92 cents lagged the Zacks Consensus Estimate of $1.17. In addition, the bottom line compared unfavorably with the prior-year quarter’s $1.93.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Click Here, See It Free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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