FS KKR Capital Corp.’s (FSK - Free Report) second-quarter 2019 adjusted net investment income (NII) of 19 cents per share surpassed the Zacks Consensus Estimate by a penny. The bottom line was on par with the year-ago quarter figure.
Results reflect substantial increase in revenues and a strong balance sheet position. However, increase in expenses was an undermining factor.
NII (GAAP Basis) came in at $101 million, up from $46 million in the prior-year quarter.
Total Investment Income & Expenses Surge
Total investment income was $199 million, up significantly from $96 million in the year-ago period. Also, the figure exceeded the Zacks Consensus Estimate of $194.8 million.
Total operating expenses jumped 96% year over year to $98 million. Drastic surge in interest income was the primary reason for the increase.
The fair value of FS KKR Capital’s total investment portfolio was $7.3 billion as of Jun 30, 2019.
Balance Sheet Position
As of Jun 30, 2019, FS KKR Capital’s net asset value was $7.88 per share compared with $7.86 as of Mar 31, 2019.
The company had $7.7 billion in total assets and $4.1 billion in total stockholders’ equity as of Jun 30, 2019.
At the end of the second quarter, the debt/equity ratio was 0.77. Cash and foreign currency totaled $288 million as of Jun 30, 2019.
Steady improvement in total investment income and strong origination volume will support FS KKR Capital’s profitability. However, considerable increase in operating expenses is a major concern.
Currently, FS KKR Capital carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Results of Other Finance Stocks
Ares Capital Corporation’s (ARCC - Free Report) second-quarter 2019 core earnings of 49 cents per share surpassed the Zacks Consensus Estimate of 44 cents. Also, the bottom line grew 25.6% from the year-ago quarter.
Hercules Capital Inc.’s (HTGC - Free Report) second-quarter 2019 net investment income of 36 cents per share outpaced the Zacks Consensus Estimate of 33 cents. The bottom line also was 38.5% above the year-ago figure.
Capitala Finance Corp.’s (CPTA - Free Report) second-quarter 2019 net investment income per share of 25 cents was in line with the Zacks Consensus Estimate. The figure was 3.8% lower than the prior-year quarter’s number.
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