NASDAQ$GLAD

Gladstone Capital Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported earnings for the second fiscal quarter ended March 31, 2022.

Gladstone Capital Corporation reported a net investment income of $8.7 million, or $0.25 per share, for the quarter ended March 31, 2022. The net increase in net assets resulting from operations was $8.3 million, or $0.24 per share. The company's net asset value per common share increased to $9.49.

  • Invested $10.8 million in existing portfolio companies.
  • Received $50.9 million in repayments and net proceeds, primarily from exits of two portfolio companies and repayment of debt investment in NetFortris Corp.
  • Net investment income of $8.7 million for the quarter covered distributions by 130%.
  • Net asset value increased to $325.5 million, or $9.49 per share.

Headline financials

Total Revenue

$17.3M

Previous: $12.9M+34.0%
EPS (adj)

$0.50

Previous: $0.40+25.0%
Net Income

$8.7M

Previous: $6.4M+35.9%
Operating Income

$8.3M

Previous: $6.4M+29.8%
Cash & Equivalents

$1.64M

No prior period
Total Assets

$538M

Previous: $493M+9.1%

Revenue & EPS history

Gladstone Capital · Revenue · Quarterly

$17.3M

Q2 2022+34%vs Q2 2021
Beat estimate in 2 of 14 quarters(14%)
ActualEstimate

Forward guidance

Gladstone Capital is well-positioned to benefit from impending increases in short-term interest rates due to its floating rate investment portfolio and fixed rate liabilities. They will continue to assess the outlook for portfolio growth and net interest income increases to sustain any future increases to shareholder distributions.

Tailwinds

  • Well-positioned to benefit from the impending increase in short-term interest rates
  • Floating rate investment portfolio
  • Fixed rate liabilities
  • Portfolio performed well and generated an elevated level of fee income
  • Dividend increase announced in April

Headwinds

  • Net originations were soft given market conditions
  • Total expenses increased by 22.2% quarter over quarter
  • Net investment income decreased by 5.1% as compared to the prior quarter
  • Net increase in net assets resulting from operations decreased from $12.1 million to $8.3 million
  • Net asset depreciation for the quarter was $0.4 million

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 2022

Historical avgQ2 2022

-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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