Goldman Sachs BDC’s ( GSBD Quick Quote GSBD - Free Report) first-quarter 2021 adjusted net investment income of 48 cents per share came in line with the Zacks Consensus Estimate. Also, the bottom line grew 6.7% from the year-ago figure. Results benefited from drastic improvement in total investment income. Also, rise in net asset value and solid investment portfolio balance were tailwinds. However, higher operating expenses acted as an undermining factor. After considering non-recurring items, net investment income was $57.6 million, up substantially from the prior-year quarter’s $18.1 million. Total Investment Income & Expenses Surge
Total investment income was $82.6 million, jumping significantly from $32 million in the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $78 million.
Total expenses surged significantly year over year to $37.3 million. Increase in all expense components led to the rise. Further, during the quarter, the company recorded fee waivers of $12.6 million. The fair value of Goldman Sachs BDC’s total investment portfolio was $3.2 billion as of Mar 31, 2021, consisting of investments in 118 portfolio companies across 38 industries. In the reported quarter, the company delivered $188.3 million in new debt and equity commitments across four new and nine existing portfolio companies. Strong Balance Sheet & Liquidity Position
As of Mar 31, 2021, Goldman Sachs BDC’s net asset value was $16.00 per share compared with $15.91 as of Dec 31, 2020.
As of Mar 31, 2021, the company had $1.61 billion of total principal amount of debt outstanding. It comprised $593 million of outstanding borrowings under its senior secured revolving credit facility, $155 million of unsecured convertible notes and $360 million of unsecured notes due 2025, and $500.0 million of unsecured notes due 2026. Also, Goldman Sachs BDC had $1.1 billion of availability under its senior secured revolving credit facility, and $45.5 million in cash and cash equivalents. Our Take
Steady improvement in total investment income and strong origination volume are anticipated to support Goldman Sachs BDC. However, mounting expenses remain a major concern.
Currently, Goldman Sachs BDC carries a Zacks Rank #3 (Hold). You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Performance of Other Finance Stocks Ares Capital Corporation’s ( ARCC Quick Quote ARCC - Free Report) first-quarter 2021 core earnings of 43 cents per share surpassed the Zacks Consensus Estimate of 42 cents. Moreover, the bottom line reflects a rise of 4.9% from the prior-year quarter’s reported number. Hercules Capital Inc.’s ( HTGC Quick Quote HTGC - Free Report) first-quarter 2021 net investment income of 30 cents per share beat the Zacks Consensus Estimate by a penny. However, the bottom line declined 18.9% year over year. TriplePoint Venture Growth BDC Corp. ( TPVG Quick Quote TPVG - Free Report) reported first-quarter 2021 net investment income of 29 cents per share. The bottom line plunged 29.3% from the year-ago quarter. Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys. Access Zacks Top 10 Stocks for 2021 today >>