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Prospect Capital (PSEC) Q4 Earnings Meet Estimates, Costs Down
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Prospect Capital Corporation’s (PSEC - Free Report) fourth-quarter fiscal 2020 (ended Jun 30) net investment income per share of 16 cents was in line with the Zacks Consensus Estimate. The bottom line decreased 15.8% year over year.
Results benefited from a fall in operating expenses and decent origination volume. However, lower revenues and a decline in the value of the company’s investment portfolio were the undermining factors.
Net investment income for the quarter was $58.3 million, down 16.3% from the prior-year quarter.
For fiscal 2020, net investment income was $265.7 million or 72 cents per share, down from $312.9 million or 85 cents per share in fiscal 2019.
Total Investment Income & Expenses Decline
Total investment income for the reported quarter was $145.2 million, down 11.6% year over year. The fall was mainly due to lower dividend income and interest income. Nonetheless, the figure beat the Zacks Consensus Estimate of $141.1 million.
Total investment income for fiscal 2020 declined 11.4% year over year to $623.5 million. However, it beat the consensus estimate of $619.4 million.
Total operating expenses for the quarter were $87 million, down 8.2% year over year.
Total Portfolio Value & Originations
The fair value of Prospect Capital’s total investment portfolio was $5.23 billion as of Jun 30, 2020, down 7.5% year over year.
In the reported quarter, the company originated $36.6 million in new and follow-on investments.
Balance Sheet
As of Jun 30, 2020, Prospect Capital’s net asset value was $8.18 per share compared with $9.01 on Jun 30, 2019. Further, the company had $3.77 billion of unencumbered assets as of the same date.
At the end of the reported quarter, net of cash debt to equity ratio was 69.6%, down from 70.0% as of Jun 30, 2019.
Our Take
Prospect Capital’s loan origination activity continues to be on track. Itstrategically deploys capital, while maintaining a balanced and diversified approach across various industries and sectors.
Prospect Capital Corporation Price, Consensus and EPS Surprise
Hercules Capital Inc.’s (HTGC - Free Report) second-quarter 2020 (ended June 30) net investment income of 32 cents per share lagged the Zacks Consensus Estimate by a penny. The bottom line declined 11.1% from the year-ago reported figure.
Ares Capital Corporation’s (ARCC - Free Report) second-quarter 2020 core earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny. However, the bottom line declined 20.4% year over year.
Victory Capital Holdings (VCTR - Free Report) reported second-quarter 2020 adjusted earnings of 89 cents per share, outpacing the Zacks Consensus Estimate of 83 cents. Also, the reported figure compared favorably with 38 cents reported in the prior-year quarter.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Prospect Capital (PSEC) Q4 Earnings Meet Estimates, Costs Down
Prospect Capital Corporation’s (PSEC - Free Report) fourth-quarter fiscal 2020 (ended Jun 30) net investment income per share of 16 cents was in line with the Zacks Consensus Estimate. The bottom line decreased 15.8% year over year.
Results benefited from a fall in operating expenses and decent origination volume. However, lower revenues and a decline in the value of the company’s investment portfolio were the undermining factors.
Net investment income for the quarter was $58.3 million, down 16.3% from the prior-year quarter.
For fiscal 2020, net investment income was $265.7 million or 72 cents per share, down from $312.9 million or 85 cents per share in fiscal 2019.
Total Investment Income & Expenses Decline
Total investment income for the reported quarter was $145.2 million, down 11.6% year over year. The fall was mainly due to lower dividend income and interest income. Nonetheless, the figure beat the Zacks Consensus Estimate of $141.1 million.
Total investment income for fiscal 2020 declined 11.4% year over year to $623.5 million. However, it beat the consensus estimate of $619.4 million.
Total operating expenses for the quarter were $87 million, down 8.2% year over year.
Total Portfolio Value & Originations
The fair value of Prospect Capital’s total investment portfolio was $5.23 billion as of Jun 30, 2020, down 7.5% year over year.
In the reported quarter, the company originated $36.6 million in new and follow-on investments.
Balance Sheet
As of Jun 30, 2020, Prospect Capital’s net asset value was $8.18 per share compared with $9.01 on Jun 30, 2019. Further, the company had $3.77 billion of unencumbered assets as of the same date.
At the end of the reported quarter, net of cash debt to equity ratio was 69.6%, down from 70.0% as of Jun 30, 2019.
Our Take
Prospect Capital’s loan origination activity continues to be on track. Itstrategically deploys capital, while maintaining a balanced and diversified approach across various industries and sectors.
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 2020 (ended June 30) net investment income of 32 cents per share lagged the Zacks Consensus Estimate by a penny. The bottom line declined 11.1% from the year-ago reported figure.
Ares Capital Corporation’s (ARCC - Free Report) second-quarter 2020 core earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny. However, the bottom line declined 20.4% year over year.
Victory Capital Holdings (VCTR - Free Report) reported second-quarter 2020 adjusted earnings of 89 cents per share, outpacing the Zacks Consensus Estimate of 83 cents. Also, the reported figure compared favorably with 38 cents reported in the prior-year quarter.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>