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FS Investment’s (FSK - Free Report) fourth-quarter 2018 adjusted net investment income (NII) of 21 cents per share surpassed the Zacks Consensus Estimate of 18 cents. The reported figure, however, comes in 12.5% lower than the year-ago tally.
The company’s results reflect lower expenses and growth in investment portfolio. However, lower NII was an undermining factor.
The company’s NII (GAAP Basis) came in at $53 million or 19 cents per share in the fourth quarter, down from $54 million or 22 cents per share reported in the prior-year quarter.
For 2018, the company reported adjusted net investment income of 85 cents per share, flat year over year. The figure surpassed the Zacks Consensus Estimate of 81 cents.
Total Investment Income Drops, Expenses Down
Total investment income for the quarter was $103 million, down 7.2% from the year-ago period. However, the reported figure exceeded the Zacks Consensus Estimate of $98.5 million.
Total investment income for 2018 came in at $394 million, down 6% from 2017. The figure also outpaced the Zacks Consensus Estimate of $389.6 million.
Total operating expenses for the reported quarter declined 17.3% year over year to $43 million. Lower incentive fees and investment advisory fees resulted in this decline.
The fair value of FS Investment’s total investment portfolio was $7.4 billion as of Dec 31, 2018.
Balance Sheet Position
As of Dec 31, 2018, Hercules Capital’s net asset value was $7.84 per share compared with $8.64 as of Sep 30, 2018.
The company had $7.7 billion in total assets and $4.2 billion in total stockholders’ equity as of Dec 31, 2018.
At the end of the fourth quarter, the debt/equity ratio was 0.79. Cash and foreign currency came in at $104 million as of Dec 31, 2018.
Our Take
FS Investment completed acquisition of Corporate Capital Trust Inc. during the quarter. Growth in total investment portfolio and lower expenses will support the company. Nonetheless, lower revenues remain a key concern.
FS Investment Corporation Price, Consensus and EPS Surprise
Shares of Ares Capital Corp. (ARCC - Free Report) have gained 2.8%, following the release of its fourth-quarter and 2018 results. Core earnings of 45 cents per share for the quarter surpassed the Zacks Consensus Estimate of 41 cents. The bottom line also jumped 18.4% from the year-ago quarter.
Shares of Ally Financial Inc. (ALLY - Free Report) gained 5.7% following the release of the company’s fourth-quarter 2018 results. Adjusted earnings of 92 cents per share surpassed the Zacks Consensus Estimate of 82 cents. Further, the bottom line compared favorably with the prior-year figure of 70 cents.
Shares of CIT Group Inc. gained 2.5% following the release of fourth-quarter 2018 results. Adjusted earnings from continuing operations of $1.21 per share surpassed the Zacks Consensus Estimate of $1.10. Also, the bottom line came in higher than the prior-year figure of 99 cents.
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FS Investment (FSK) Q4 Earnings Beat, Revenues Decrease
FS Investment’s (FSK - Free Report) fourth-quarter 2018 adjusted net investment income (NII) of 21 cents per share surpassed the Zacks Consensus Estimate of 18 cents. The reported figure, however, comes in 12.5% lower than the year-ago tally.
The company’s results reflect lower expenses and growth in investment portfolio. However, lower NII was an undermining factor.
The company’s NII (GAAP Basis) came in at $53 million or 19 cents per share in the fourth quarter, down from $54 million or 22 cents per share reported in the prior-year quarter.
For 2018, the company reported adjusted net investment income of 85 cents per share, flat year over year. The figure surpassed the Zacks Consensus Estimate of 81 cents.
Total Investment Income Drops, Expenses Down
Total investment income for the quarter was $103 million, down 7.2% from the year-ago period. However, the reported figure exceeded the Zacks Consensus Estimate of $98.5 million.
Total investment income for 2018 came in at $394 million, down 6% from 2017. The figure also outpaced the Zacks Consensus Estimate of $389.6 million.
Total operating expenses for the reported quarter declined 17.3% year over year to $43 million. Lower incentive fees and investment advisory fees resulted in this decline.
The fair value of FS Investment’s total investment portfolio was $7.4 billion as of Dec 31, 2018.
Balance Sheet Position
As of Dec 31, 2018, Hercules Capital’s net asset value was $7.84 per share compared with $8.64 as of Sep 30, 2018.
The company had $7.7 billion in total assets and $4.2 billion in total stockholders’ equity as of Dec 31, 2018.
At the end of the fourth quarter, the debt/equity ratio was 0.79. Cash and foreign currency came in at $104 million as of Dec 31, 2018.
Our Take
FS Investment completed acquisition of Corporate Capital Trust Inc. during the quarter. Growth in total investment portfolio and lower expenses will support the company. Nonetheless, lower revenues remain a key concern.
FS Investment Corporation Price, Consensus and EPS Surprise
FS Investment Corporation Price, Consensus and EPS Surprise | FS Investment Corporation Quote
Currently, FS Investment carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Results of Other Finance Stocks
Shares of Ares Capital Corp. (ARCC - Free Report) have gained 2.8%, following the release of its fourth-quarter and 2018 results. Core earnings of 45 cents per share for the quarter surpassed the Zacks Consensus Estimate of 41 cents. The bottom line also jumped 18.4% from the year-ago quarter.
Shares of Ally Financial Inc. (ALLY - Free Report) gained 5.7% following the release of the company’s fourth-quarter 2018 results. Adjusted earnings of 92 cents per share surpassed the Zacks Consensus Estimate of 82 cents. Further, the bottom line compared favorably with the prior-year figure of 70 cents.
Shares of CIT Group Inc. gained 2.5% following the release of fourth-quarter 2018 results. Adjusted earnings from continuing operations of $1.21 per share surpassed the Zacks Consensus Estimate of $1.10. Also, the bottom line came in higher than the prior-year figure of 99 cents.
The Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
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