NASDAQ$PSEC

Prospect Capital Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported net investment income of $0.21 per common share, a 7% increase in net asset value per common share, and declared stable monthly cash common and preferred share distributions.

Prospect Capital Corporation announced its financial results for the fiscal quarter ended December 31, 2020, reporting a net investment income of $0.21 per common share and a 7% increase in net asset value per common share. The company also declared stable monthly cash common and preferred share distributions.

  • Net Investment Income (NII) was $81,561,000.
  • NII per Common Share was $0.21.
  • Net Asset Value (NAV) per Common Share increased to $8.96.
  • The company declared monthly cash distributions to common shareholders of $0.06 per share for February, March, and April 2021.

Headline financials

Total Revenue

$172M

Previous: $162M+6.4%
EPS (adj)

$0.21

Previous: $0.18+16.7%
NII per share

$0.21

Previous: $0.18+16.7%
NAV per share

$8.96

Previous: $8.66+3.5%
Debt to total assets

61.1%

No prior period
Non-accrual loans

0.7%

No prior period
Net Income

$306M

No prior period
Cash & Equivalents

$50.1M

No prior period
Total Assets

$5.7B

No prior period

Revenue & EPS history

Prospect Capital · Revenue · Quarterly

$172M

Q2 2021+6.4%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Prospect Capital · $172M total across 3 segments · Q2 2021

  • Interest income
    $145M
  • Other income
    $25.2M
  • Dividend income
    $2.28M

Forward guidance

Prospect Capital aims to enhance NII per share growth through several initiatives. These include the perpetual preferred equity programs, greater utilization of its revolving credit facility, retirement of higher cost liabilities, issuing lower cost notes and increased originations in senior secured debt and selected equity investments.

Tailwinds

  • Targeted $1.25 billion perpetual preferred equity programs
  • Greater utilization of cost efficient revolving credit facility
  • Retirement of higher cost liabilities
  • Issuing lower cost notes
  • Increased originations in senior secured debt and selected equity investments

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.4%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+0.5%

Avg return

30 days after

55%

23 / 42 earnings

Positive

+10.7%

Q1 2024

Best reaction

-16.3%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-9.9%-17.9%-18.6%
Q2 2026+10.3%+16.9%+1.5%
Q1 2026+0.4%+12.2%+5.1%
Q3 2025-1.9%+0.8%-10.2%
Q2 2025-1.0%+3.8%+0.7%
Q1 2025-16.3%-18.2%-13.4%
Q4 2024-1.8%+2.8%+4.3%
Q3 2024+3.6%+4.0%+6.3%
Q1 2024+10.7%+3.9%+7.9%
Q4 2023+1.0%+0.7%+0.8%
Q3 2023-1.7%-4.7%-0.9%
Q2 2023-0.7%+1.7%-9.7%
Q1 2023+0.8%+2.5%-2.2%
Q3 2022-1.2%-1.8%-0.8%
Q2 2022+2.0%-1.0%-4.3%
Q1 2022+6.9%+6.3%+2.2%
Q3 2021-2.0%-1.5%+12.6%
Q2 2021+4.9%+8.0%+11.2%
Q1 2021+4.2%+3.2%+9.3%
Q4 2020-0.8%-1.4%-2.3%
Q3 2020+5.9%+8.1%+36.0%
Q2 2020-0.5%-0.6%-27.6%
Q1 2020-0.6%+1.4%+1.7%
Q4 2019-5.4%-4.4%+0.5%
Q3 2019-0.6%-1.3%-4.0%
Q2 2019-4.6%-7.9%-5.6%
Q1 2019+2.7%+3.7%-0.7%
Q4 2018+2.8%+4.5%+2.6%
Q3 2018+1.6%+2.9%+6.8%
Q2 2018+3.3%+8.4%+4.6%
Q1 2018-4.9%+1.9%+14.4%
Q4 2017-3.8%-6.0%-6.5%
Q3 2017-6.8%-12.5%-13.0%
Q2 2017+3.5%+6.6%+4.6%
Q1 2017+0.8%+3.3%+8.5%
Q4 2016+2.0%+0.4%-3.2%
Q3 2016+1.8%
Q2 2016+2.5%
Q1 2015-1.9%
Q4 2015+7.1%
Q3 2015+2.0%
Q2 2014+0.1%

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