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Prospect Capital (PSEC) Q4 Earnings Improve Y/Y, Costs Down
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Prospect Capital’s (PSEC - Free Report) fourth-quarter fiscal 2021 (ended Jun 30) net investment income of 19 cents per share was up 18.8% year over year. The bottom line matched the Zacks Consensus Estimate.
Results were aided by a rise in total investment income and lower expenses. Further, overall portfolio activity remained decent in the reported quarter with strong originations.
Net investment income came in at $73.2 million, up 25.7% from the prior-year quarter.
In fiscal 2021, net investment income was $285.7 million or 75 cents per share, up from $265.7 million or 72 cents per share a year ago.
Total Investment Income Climbs, Expenses Down
Total investment income was $157.3 million, up 8.3% year over year. The rise resulted from higher interest income, dividend income and other income.
In fiscal 2021, total investment income grew 1.4% to $632 million.
Total operating expenses declined 3.3% from the prior-year quarter to $84.1 million.
Total Portfolio Value & Originations Decent
The fair value of Prospect Capital’s total investment portfolio was $6.2 billion as of Jun 30, 2021, up 18.5% from the previous-year quarter.
In the reported quarter, the company recorded $306.8 million of total originations, while repayments were $156.3 million.
Strong Balance-Sheet Position
As of Jun 30, 2021, Prospect Capital’s net asset value was $9.81 per share compared with $8.18 on Jun 30, 2020. The company had $4.5 billion of unencumbered assets as of the same date.
At the end of the reported quarter, net of cash debt to equity ratio was 55.9%, down from 69.6% as of Jun 30, 2020.
Our Take
Solid loan origination activity continues to be on track and this is expected to support Prospect Capital’s financials.
Prospect Capital Corporation Price, Consensus and EPS Surprise
Hercules Capital Inc.’s (HTGC - Free Report) second-quarter 2021 net investment income of 32 cents per share was in line with the Zacks Consensus Estimate. The figure indicates no change from the year-ago quarter’s reported number.
Ares Capital Corporation’s (ARCC - Free Report) second-quarter 2021 core earnings of 53 cents per share surpassed the Zacks Consensus Estimate of 43 cents. Moreover, the bottom line reflects a rise of 35.9% from the prior-year quarter’s reported number.
FS KKR Capital Corp.’s (FSK - Free Report) second-quarter 2021 adjusted net investment income per share of 74 cents surpassed the Zacks Consensus Estimate of 61 cents. In the prior-year quarter, the company reported earnings of 62 cents. The reported quarter’s results exclude accretion resulting from the merger with FS KKR Capital Corp. II.
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Prospect Capital (PSEC) Q4 Earnings Improve Y/Y, Costs Down
Prospect Capital’s (PSEC - Free Report) fourth-quarter fiscal 2021 (ended Jun 30) net investment income of 19 cents per share was up 18.8% year over year. The bottom line matched the Zacks Consensus Estimate.
Results were aided by a rise in total investment income and lower expenses. Further, overall portfolio activity remained decent in the reported quarter with strong originations.
Net investment income came in at $73.2 million, up 25.7% from the prior-year quarter.
In fiscal 2021, net investment income was $285.7 million or 75 cents per share, up from $265.7 million or 72 cents per share a year ago.
Total Investment Income Climbs, Expenses Down
Total investment income was $157.3 million, up 8.3% year over year. The rise resulted from higher interest income, dividend income and other income.
In fiscal 2021, total investment income grew 1.4% to $632 million.
Total operating expenses declined 3.3% from the prior-year quarter to $84.1 million.
Total Portfolio Value & Originations Decent
The fair value of Prospect Capital’s total investment portfolio was $6.2 billion as of Jun 30, 2021, up 18.5% from the previous-year quarter.
In the reported quarter, the company recorded $306.8 million of total originations, while repayments were $156.3 million.
Strong Balance-Sheet Position
As of Jun 30, 2021, Prospect Capital’s net asset value was $9.81 per share compared with $8.18 on Jun 30, 2020. The company had $4.5 billion of unencumbered assets as of the same date.
At the end of the reported quarter, net of cash debt to equity ratio was 55.9%, down from 69.6% as of Jun 30, 2020.
Our Take
Solid loan origination activity continues to be on track and this is expected to support Prospect Capital’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) second-quarter 2021 net investment income of 32 cents per share was in line with the Zacks Consensus Estimate. The figure indicates no change from the year-ago quarter’s reported number.
Ares Capital Corporation’s (ARCC - Free Report) second-quarter 2021 core earnings of 53 cents per share surpassed the Zacks Consensus Estimate of 43 cents. Moreover, the bottom line reflects a rise of 35.9% from the prior-year quarter’s reported number.
FS KKR Capital Corp.’s (FSK - Free Report) second-quarter 2021 adjusted net investment income per share of 74 cents surpassed the Zacks Consensus Estimate of 61 cents. In the prior-year quarter, the company reported earnings of 62 cents. The reported quarter’s results exclude accretion resulting from the merger with FS KKR Capital Corp. II.