We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
FS KKR Capital (FSK) Q2 Earnings Top Estimates, Costs Rise Y/Y
Read MoreHide Full Article
FS KKR Capital Corp.’s (FSK - Free Report) second-quarter 2021 adjusted net investment income (NII) 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.
Results were aided by a rise in total investment income. Also, portfolio activity was decent in the quarter. However, higher expenses hurt results to some extent.
NII (GAAP basis) was $116 million, up 50.6% from the prior-year quarter.
Total Investment Income Improves, Expenses Rise
Total investment income was $206 million, up 37.3% year over year. The top line surpassed the Zacks Consensus Estimate of $146.8 million.
Total operating expenses increased 23.3% from the prior-year quarter to $90 million. All cost components except for administrative services expenses, and accounting and administrative fees witnessed a rise.
Total Portfolio Value & Balance Sheet Decent
The fair value of FS KKR Capital’s total investment portfolio was $14.7 billion as of Jun 30, 2021.
As of Jun 30, 2021, the company’s net asset value was $26.84 per share compared with $25.02 as of Dec 31, 2020.
The company had $15.7 billion in total assets and $7.7 billion in total stockholders’ equity at the end of the second quarter.
Our Take
Decent origination volumes are expected to support FS KKR Capital’s profitability. However, a tough operating backdrop poses a concern.
FS KKR Capital Corp. Price, Consensus and EPS Surprise
Credit Acceptance Corporation’s (CACC - Free Report) second-quarter 2021 earnings of $17.18 per share comfortably outpaced the Zacks Consensus Estimate of $10.08. The bottom line reflects a substantial improvement from $5.40 earned in the prior-year quarter. These figures include certain non-recurring items.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
FS KKR Capital (FSK) Q2 Earnings Top Estimates, Costs Rise Y/Y
FS KKR Capital Corp.’s (FSK - Free Report) second-quarter 2021 adjusted net investment income (NII) 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.
Results were aided by a rise in total investment income. Also, portfolio activity was decent in the quarter. However, higher expenses hurt results to some extent.
NII (GAAP basis) was $116 million, up 50.6% from the prior-year quarter.
Total Investment Income Improves, Expenses Rise
Total investment income was $206 million, up 37.3% year over year. The top line surpassed the Zacks Consensus Estimate of $146.8 million.
Total operating expenses increased 23.3% from the prior-year quarter to $90 million. All cost components except for administrative services expenses, and accounting and administrative fees witnessed a rise.
Total Portfolio Value & Balance Sheet Decent
The fair value of FS KKR Capital’s total investment portfolio was $14.7 billion as of Jun 30, 2021.
As of Jun 30, 2021, the company’s net asset value was $26.84 per share compared with $25.02 as of Dec 31, 2020.
The company had $15.7 billion in total assets and $7.7 billion in total stockholders’ equity at the end of the second quarter.
Our Take
Decent origination volumes are expected to support FS KKR Capital’s profitability. However, a tough operating backdrop poses a concern.
FS KKR Capital Corp. Price, Consensus and EPS Surprise
FS KKR Capital Corp. price-consensus-eps-surprise-chart | FS KKR Capital Corp. Quote
Currently, FS KKR Capital carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Finance Companies
Credit Acceptance Corporation’s (CACC - Free Report) second-quarter 2021 earnings of $17.18 per share comfortably outpaced the Zacks Consensus Estimate of $10.08. The bottom line reflects a substantial improvement from $5.40 earned in the prior-year quarter. These figures include certain non-recurring items.
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.