NASDAQ$PNNT

PennantPark Investment Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Announced financial results for the third fiscal quarter ended June 30, 2020.

PennantPark Investment Corporation reported a 7% increase in adjusted NAV, reduced leverage, and increased liquidity. They also announced the formation of PSLF, a joint venture with Pantheon.

  • Portfolio totaled $1,333.3 million as of June 30, 2020.
  • Invested $11.7 million in one new and 12 existing portfolio companies with a weighted average yield on debt investments of 6.8% for the three months ended June 30, 2020.
  • Investment income for the three months ended June 30, 2020 was $25.4 million.
  • Net investment income totaled $11.0 million, or $0.16 per share, for the three months ended June 30, 2020.

Headline financials

Total Revenue

$25.4M

Previous: $28.1M-9.6%
EPS (adj)

$0.16

Previous: $0.17-5.9%
Weighted Average Yield on Debt Investments

8.7%

No prior period
Net Income

$11M

No prior period
Operating Income

$11M

No prior period
Cash & Equivalents

$51.6M

No prior period

Revenue & EPS history

PennantPark · Revenue · Quarterly

$25.4M

Q3 2020-9.6%vs Q3 2019
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

PennantPark · $25.2M total across 3 segments · Q3 2020

  • First Lien Secured Debt
    $17.6M
  • Second Lien Secured Debt
    $5.1M
  • Subordinated Debt
    $2.5M

Forward guidance

The COVID-19 pandemic is expected to continue to have a material adverse impact on future net investment income, the fair value of portfolio investments, and the results of operations and financial condition of portfolio companies.

Headwinds

  • COVID-19 pandemic will continue to have a material adverse impact on future net investment income.
  • COVID-19 pandemic will continue to have a material adverse impact on the fair value of our portfolio investments.
  • COVID-19 pandemic will continue to have a material adverse impact on the results of operations of our portfolio companies.
  • COVID-19 pandemic will continue to have a material adverse impact on the financial condition of our portfolio companies.
  • Significant reduction of our net asset value as of June 30, 2020 as compared to our net asset value as of September 30, 2019.

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 Q3 2020

Historical avgQ3 2020

+0.3%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+2.3%

Avg return

30 days after

52%

32 / 62 earnings

Positive

+19.3%

Q4 2020

Best reaction

-12.8%

Q2 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-4.6%-10.4%
Q4 2025-5.6%-5.0%-8.1%
Q3 2025+0.8%-2.1%-2.3%
Q2 2025+3.3%+2.6%+3.5%
Q1 2025-0.7%+0.4%-3.8%
Q4 2024-1.0%-2.4%+1.3%
Q3 2024-0.4%+0.4%+0.1%
Q2 2024+3.2%+2.1%+7.8%
Q1 2024-2.2%-1.2%-1.9%
Q4 2023-2.5%-2.2%-2.8%
Q3 2023+3.6%+2.1%-1.0%
Q2 2023+7.4%+9.4%+20.1%
Q4 2022+0.3%+1.0%-4.8%
Q3 2022-1.7%-0.8%-3.6%
Q2 2022-0.8%-5.2%-5.8%
Q1 2022+6.3%+7.1%+5.6%
Q4 2021+1.0%+3.3%-3.2%
Q3 2021+4.6%+5.4%+1.4%
Q2 2021+4.4%+2.3%+5.1%
Q1 2021+0.4%-1.9%+3.7%
Q4 2020+19.3%+28.0%+28.9%
Q3 2020+3.2%+3.2%+2.3%
Q2 2020-4.6%-9.9%+27.4%
Q1 2020+2.9%+0.8%-11.1%
Q4 2019+1.7%+2.5%+11.3%
Q3 2019+0.6%-1.7%-3.7%
Q2 2019-3.6%-5.5%-6.5%
Q1 2019-3.5%-1.5%-3.3%
Q4 2018+4.1%+2.7%+2.4%
Q3 2018-0.5%+1.5%+1.5%
Q2 2018+2.5%+4.4%+10.2%
Q1 2018+4.8%+8.0%+9.9%
Q4 2017-4.0%-4.7%-8.1%
Q3 2017+0.7%+3.6%+1.1%
Q2 2017+4.4%-1.2%-3.1%
Q4 2016-6.0%-5.8%+2.3%
Q3 2016+2.0%+2.8%+10.1%
Q2 2016+0.2%
Q1 2016+5.7%
Q4 2015-7.8%
Q3 2015+2.8%
Q2 2015+0.4%
Q1 2015+4.5%
Q4 2014+0.4%
Q3 2014-0.5%
Q2 2014+1.0%
Q1 2014+0.7%
Q4 2013+1.3%
Q3 2013-1.2%
Q2 2013-2.0%
Q1 2013-2.4%
Q4 2012-2.4%
Q3 2012-0.2%
Q2 2012-1.4%
Q1 2012+0.0%
Q4 2011-4.4%
Q3 2011-4.6%
Q2 2011-0.2%
Q1 2010+4.2%
Q4 2010+0.0%
Q3 2010-1.5%
Q2 2010-12.8%

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