Prospect’s Fiscal 3Q18 Results Beat Estimates



Net investment income

Prospect Capital Corporation (PSEC) released its earnings report for fiscal 3Q18 on May 9. The results were for the quarter that ended on March 31. The company reported net investment income or NII of $0.19 per share, while Wall Street analysts were expecting it to report $0.18. The quarter’s NII represents a decline sequentially as well as on a year-over-year or YoY basis.

The sequential decline in the NII was mainly due to a rise in administrative overhead expenses in fiscal 3Q18. The company stated in its earnings release that it has been focusing on protecting capital as well as minimizing risk rather than chasing yield.

Total investment income

Prospect Capital generated total investment income of $162.84 million in fiscal 3Q18, which beat Wall Street analysts’ predictions by $9.61 million. The company’s competitors (XLF) BlackRock Capital Investment Corporation (BKCC) and Ares Capital Corporation (ARCC) have reported total investment income of $20.84 million and $317 million, respectively, for the March 2018 quarter. Apollo Investment Corporation (AINV) is slated to release its earnings report on May 18.

In fiscal 3Q18, Prospect Capital saw total originations exceeding total repayments. Its total originations amounted to $429.9 million, while its total repayments amounted to $118 million. In fiscal 3Q18, the company’s net asset value or NAV per share was $9.23. In fiscal 2Q18 and fiscal 3Q17, it had been $9.28 and $9.43, respectively.

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