NASDAQ$GLAD

Gladstone Capital Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported earnings for the second fiscal quarter ended March 31, 2020.

Gladstone Capital Corporation reported a net investment income of $6.5 million, or $0.21 per share, for the quarter ended March 31, 2020. The Net Decrease in Net Assets Resulting from Operations was $27.8 million, or $0.89 per share, driven by net portfolio depreciation and net realized loss on investments.

  • Interest income decreased by $0.5 million, or 4.0%, due to lower average Libor rates.
  • Other income decreased by $0.2 million, or 30.3%, primarily due to a decrease in dividend income received.
  • Total expenses decreased by 13.9% quarter over quarter, largely as a result of the $0.8 million increase in the incentive fee credit granted by the Adviser.
  • Net Investment Income for the quarter ended March 31, 2020 was $6.5 million, or $0.21 per share.

Headline financials

Total Revenue

$11.5M

Previous: $12.5M-8.2%
EPS (adj)

$0.42

Previous: $0.42+0.0%
Net Income

$6.5M

No prior period

Revenue & EPS history

Gladstone Capital · Revenue · Quarterly

$11.5M

Q2 2020-8.2%vs Q2 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

Gladstone Capital was in a relatively strong capital position entering last quarter. The company believes it has sufficient levels of liquidity to support its existing portfolio companies and selectively deploy capital in new investment opportunities.

Tailwinds

  • Strong capital position entering last quarter.
  • Diverse portfolio.
  • Focus on industries that are generally expected to be more insulated from economic cycles.
  • Limited exposure to the consumer or retail services sectors.
  • Overall leverage continues to compare favorably.

Headwinds

  • Majority of the unrealized depreciation recognized last quarter is a result of the broad-based market valuations and COVID-19 related uncertainties.
  • COVID-19 related uncertainties.
  • Market pricing adjustment combined with additional valuation discounts applied to any portfolio company impacted to some extent by COVID-19.
  • Decline in investor demand for broadly syndicated loans.
  • Economic uncertainties at the end of last quarter significantly increased the benchmark yields on which our internal (and external) investment valuations are based.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.6%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+0.5%

Avg return

30 days after

45%

29 / 64 earnings

Positive

+8.4%

Q2 2022

Best reaction

-15.6%

Q2 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+4.1%+2.2%
Q1 2026+2.1%-5.6%-9.3%
Q4 2025+5.8%+8.2%+11.0%
Q2 2025-0.2%+2.4%+6.5%
Q1 2025+0.5%+4.0%-4.1%
Q4 2024+0.5%+4.4%+9.7%
Q3 2024-0.5%-0.4%-0.6%
Q2 2024-0.8%+1.4%+4.6%
Q1 2024-6.1%-4.4%-2.9%
Q4 2023+1.8%+0.1%+5.6%
Q3 2023+2.6%+3.4%-6.4%
Q2 2023-1.5%-0.9%-0.9%
Q1 2023+3.8%+1.7%-4.1%
Q4 2022+4.8%+3.2%-2.2%
Q3 2022-2.6%-2.0%-6.8%
Q2 2022+8.4%+5.7%+0.3%
Q1 2022+2.1%+3.6%-2.0%
Q4 2021+4.6%+1.2%-3.7%
Q3 2021-0.2%+2.8%+1.7%
Q2 2021-0.8%-0.5%+5.4%
Q1 2021+3.5%+6.6%+4.4%
Q4 2020+6.7%+8.2%+10.8%
Q3 2020+1.9%+1.1%+5.4%
Q2 2020-12.3%-3.4%+11.8%
Q1 2020-0.1%+1.2%-13.6%
Q4 2019+3.0%+2.4%+2.6%
Q3 2019-1.8%-0.9%+0.0%
Q2 2019-1.5%-0.1%-5.3%
Q1 2019+1.2%-1.4%+1.8%
Q4 2018-1.8%-4.0%-9.8%
Q3 2018+1.3%+1.7%+4.4%
Q2 2018+0.5%+1.4%+4.4%
Q1 2018-7.5%-0.4%-2.3%
Q4 2017+0.2%+0.2%-5.0%
Q3 2017-0.6%-0.3%-7.3%
Q2 2017-0.6%+2.0%-0.2%
Q1 2017-0.9%-4.5%-9.6%
Q4 2016+0.4%+2.6%+16.5%
Q3 2016+1.1%+3.6%+8.1%
Q2 2016-3.1%
Q1 2016-5.8%
Q4 2015+1.0%
Q3 2015+3.0%
Q2 2015-6.5%
Q1 2015+2.8%
Q4 2014+0.3%
Q3 2014-10.2%
Q2 2014-2.4%
Q1 2014-1.6%
Q4 2013+1.4%
Q3 2013-0.5%
Q2 2013-5.2%
Q1 2013-0.4%
Q4 2012-10.7%
Q3 2012-1.5%
Q2 2012-0.1%
Q1 2012+3.7%
Q4 2011-0.5%
Q3 2011-3.3%
Q2 2011-0.4%
Q1 2010+4.6%
Q4 2010-5.1%
Q3 2010-3.2%
Q2 2010-15.6%

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