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Apollo Investment (AINV) Q1 Earnings Meet Estimates, Costs Dip

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Apollo Investment Corporation’s first-quarter fiscal 2022 (ended Jun 30) net investment income of 39 cents per share matched the Zacks Consensus Estimate. The bottom line declined 9.3% year over year.

The results were hurt by lower total investment income. However, decline in expenses and decent portfolio activity during the quarter were tailwinds.

Net investment income was $25.3 million, down 10.3% from the prior-year quarter.

Total Investment Income & Expenses Decline

Total investment income was $50.6 million, down 10.8% year over year. The fall was mainly due to lower interest income. The figure marginally missed the Zacks Consensus Estimate of $50.8 million.

Total expenses, net of management fee offset rebate and expense reimbursements, fell 11.4% to $25.2 million.

Solid Balance Sheet Position

As of Jun 30, 2021, the company’s cash and cash equivalents (including foreign currencies) totaled $47.3 million, down from $54.6 million on Mar 31, 2021.

As of Jun 30, 2021, Apollo Investment had $1.49 billion of debt obligations. This included $350 million of Senior Unsecured Notes and $1.14 billion outstanding under the credit facility.

Apollo Investment’s total assets amounted to $2.59 billion, up from $2.54 billion as of Mar 31, 2021.

Net asset value was $16.02 per share, up from $15.88 as of March 2021-end.

Decent Portfolio Activity

The fair value of Apollo Investment’s total investment portfolio was $2.49 billion as of Jun 30, 2021.

In the reported quarter, the company originated $295.2 million of investments and had $266.1 million of repayments.

Share Repurchase Update

During the quarter, Apollo Investment repurchased 0.14 million shares for $2 million. Further, subsequent to quarter-end through Aug 4, the company repurchased 44,418 shares for $0.6 million.

Our Viewpoint

Continued decent origination volumes are expected to support Apollo Investment’s financials. Lower expenses are likely to aid the bottom line to some extent as well.
 

Currently, Apollo Investment carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

Performance & Earnings Date of Other Finance Stocks

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.

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.

FS KKR Capital Corp. (FSK - Free Report) is scheduled to announce results on Aug 9.


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