NASDAQ$OFS
Ofs Capital Corp · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Announced financial results with net investment income increasing and a distribution increase for Q3 2023.
OFS Capital Corporation reported an increase in quarterly net investment income to $0.38 per common share for Q2 2023. The company's investment portfolio's weighted-average performing income yield increased to 13.8%. A distribution of $0.34 per common share for the third quarter of 2023 was declared, representing a 3.0% increase compared to the prior quarter distribution.
- Net investment income of $0.38 per common share for the quarter ended June 30, 2023, increased from $0.37 per common share for the quarter ended March 31, 2023.
- Net loss on investments of $0.53 per common share; no new non-accrual loans during the quarter.
- Net asset value (NAV) per common share of $12.94, as of June 30, 2023.
- Investment portfolio’s weighted-average performing income yield increased to 13.8%.
Headline financials
Revenue & EPS history
OFS Capital · Revenue · Quarterly
-$5.03M
Forward guidance
Management expressed confidence in the company's balance sheet positioning due to a high percentage of floating rate loans in the portfolio and a majority of liabilities that have a fixed rate of interest.
Tailwinds
- Balance sheet is well positioned in the current interest rate environment.
- Vast majority of the loan portfolio being floating rate.
- Majority of debt being fixed-rate.
- Approximately 86% of outstanding debt matures in 2026 or later.
- More than half of outstanding debt is unsecured.
Headwinds
- There can be no assurance that such a composition will lead to future success.
- Net loss on investments of $0.53 per common share
- Net asset value (“NAV”) per common share decreased from $13.42 to $12.94
- Net realized loss on investments of $0.78 per common share
- The Company recognized a net loss on investments of $7.1 million, primarily due to unrealized depreciation of $4.3 million and $2.7 million on structured finance securities and equity securities, respectively.
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 2023
+1.2%
Avg return
Earnings day
-0.5%
Avg return
5 days after
-0.6%
Avg return
30 days after
53%
10 / 19 earnings
Positive
+14.2%
Q3 2022
Best reaction
-8.1%
Q4 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +0.2% | -2.0% | -14.4% | |
| Q4 2025 | -3.9% | -6.7% | -17.9% | |
| Q3 2025 | -0.1% | -26.9% | -32.0% | |
| Q1 2025 | -1.2% | -3.1% | -6.4% | |
| Q4 2024 | +4.2% | +6.9% | +8.6% | |
| Q3 2024 | -1.0% | -2.3% | -0.5% | |
| Q2 2024 | -5.0% | -5.3% | -4.8% | |
| Q1 2024 | -2.5% | -2.4% | +0.6% | |
| Q4 2023 | -8.1% | -8.5% | -12.5% | |
| Q3 2023 | +1.7% | +5.5% | +9.8% | |
| Q2 2023 | +0.3% | -1.7% | +5.0% | |
| Q1 2023 | +1.1% | +3.0% | -1.4% | |
| Q4 2022 | +8.2% | +7.7% | +4.1% | |
| Q3 2022 | +14.2% | +11.3% | +13.0% | |
| Q2 2022 | -0.1% | -2.2% | -6.8% | |
| Q1 2022 | -2.5% | -0.9% | +2.6% | |
| Q4 2021 | +9.1% | +10.9% | +33.1% | |
| Q3 2021 | +3.4% | +0.9% | +0.2% | |
| Q4 2020 | +4.3% | +7.0% | +7.9% |
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