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Prospect Capital (PSEC) Q3 Earnings In Line, Revenues Climb
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Prospect Capital’s (PSEC - Free Report) third-quarter fiscal 2021 (ended Mar 31) net investment income of 19 cents per share came in line with the Zacks Consensus Estimate. Also, the bottom line was on par with the year-ago quarter number.
Results were aided by a rise in total investment income, partly offset by higher expenses. Further, overall portfolio activity remained decent in the reported quarter with strong originations.
Net investment income came in at $73.4 million, up 7.2% from the prior-year quarter.
Total Investment Income Climbs, Expenses Rise
Total investment income came in at $159.5 million, up 3.2% year over year. This rise resulted from an increase in interest income and other income. However, the top-line figure missed the Zacks Consensus Estimate of $161.9 million.
Total operating expenses rose marginally from the prior-year quarter to $86.1 million.
Total Portfolio Value & Originations Decent
The fair value of Prospect Capital’s total investment portfolio was $5.9 billion as of Mar 31, 2021, up 4.6% from the previous quarter. In the reported quarter, the company recorded $258.4 million of total originations, while repayments were $182.5 million.
Strong Balance-Sheet Position
As of Mar 31, 2020, Prospect Capital’s net asset value was $9.38 per share compared with $8.96 on Dec 31, 2020. Further, the company had $4.4 billion of unencumbered assets as of the same date.
At the end of the reported quarter, net of cash debt to equity ratio was 56.5%, down from 61.1% as of Dec 31, 2020.
Our Take
While higher expenses are expected to hurt Prospect Capital’s bottom line to an extent in the near term, its loan origination activity continues to be on track. This is anticipated to support the company’s financials.
Prospect Capital Corporation Price, Consensus and EPS Surprise
Hercules Capital Inc.’s (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% from the year-ago quarter’s reported figure.
Ares Capital Corporation’s (ARCC - Free Report) first-quarter core earnings of 43 cents per share surpassed the Zacks Consensus Estimate of 42 cents. Further, the bottom line rose 4.9% year over year.
TriplePoint Venture Growth BDC Corp.’s (TPVG - Free Report) first-quarter 2021 net investment income came in at 29 cents per share. Also, the bottom line improved 29.3% from the year-ago quarter.
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Prospect Capital (PSEC) Q3 Earnings In Line, Revenues Climb
Prospect Capital’s (PSEC - Free Report) third-quarter fiscal 2021 (ended Mar 31) net investment income of 19 cents per share came in line with the Zacks Consensus Estimate. Also, the bottom line was on par with the year-ago quarter number.
Results were aided by a rise in total investment income, partly offset by higher expenses. Further, overall portfolio activity remained decent in the reported quarter with strong originations.
Net investment income came in at $73.4 million, up 7.2% from the prior-year quarter.
Total Investment Income Climbs, Expenses Rise
Total investment income came in at $159.5 million, up 3.2% year over year. This rise resulted from an increase in interest income and other income. However, the top-line figure missed the Zacks Consensus Estimate of $161.9 million.
Total operating expenses rose marginally from the prior-year quarter to $86.1 million.
Total Portfolio Value & Originations Decent
The fair value of Prospect Capital’s total investment portfolio was $5.9 billion as of Mar 31, 2021, up 4.6% from the previous quarter.
In the reported quarter, the company recorded $258.4 million of total originations, while repayments were $182.5 million.
Strong Balance-Sheet Position
As of Mar 31, 2020, Prospect Capital’s net asset value was $9.38 per share compared with $8.96 on Dec 31, 2020. Further, the company had $4.4 billion of unencumbered assets as of the same date.
At the end of the reported quarter, net of cash debt to equity ratio was 56.5%, down from 61.1% as of Dec 31, 2020.
Our Take
While higher expenses are expected to hurt Prospect Capital’s bottom line to an extent in the near term, its loan origination activity continues to be on track. This is anticipated to support the company’s financials.
Prospect Capital Corporation Price, Consensus and EPS Surprise
Prospect Capital Corporation price-consensus-eps-surprise-chart | Prospect Capital Corporation Quote
Currently, Prospect Capital 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
Hercules Capital Inc.’s (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% from the year-ago quarter’s reported figure.
Ares Capital Corporation’s (ARCC - Free Report) first-quarter core earnings of 43 cents per share surpassed the Zacks Consensus Estimate of 42 cents. Further, the bottom line rose 4.9% year over year.
TriplePoint Venture Growth BDC Corp.’s (TPVG - Free Report) first-quarter 2021 net investment income came in at 29 cents per share. Also, the bottom line improved 29.3% from the year-ago quarter.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>