NASDAQ$PSEC

Prospect Capital Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Prospect Capital reported financial results for Q4 2020.

Prospect Capital Corporation reported a net investment income of $58.27 million, or $0.16 per share, and a net income of $162.61 million, or $0.44 per share, for the quarter ended June 30, 2020. The company declared shareholder distributions of $0.18 per share for the same period. Net asset value per share at period end was $8.18.

  • Net investment income was $58.27 million, or $0.16 per share.
  • Net income was $162.61 million, or $0.44 per share.
  • Distributions to shareholders were $0.18 per share.
  • Net asset value per share at period end was $8.18.

Headline financials

Total Revenue

$145M

Previous: $164M-11.6%
EPS (adj)

$0.16

Previous: $0.19-15.8%
NII per share

$0.16

No prior period
NAV per share

$8.18

No prior period
Distributions per share

$0.18

No prior period
Net Income

$163M

No prior period
Operating Income

$58.3M

No prior period
Cash & Equivalents

$44.6M

No prior period
Total Assets

$5.3B

No prior period

Revenue & EPS history

Prospect Capital · Revenue · Quarterly

$145M

Q4 2020-11.6%vs Q4 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Prospect Capital · $145M total across 3 segments · Q4 2020

  • Interest income
    $129M
  • Other income
    $15.2M
  • Dividend income
    $1.1M

Forward guidance

Prospect Capital expects to declare November 2020, December 2020, and January 2021 distributions in November 2020. The company is focused on enhancing accretive NII per share growth.

Tailwinds

  • Targeted $1 billion perpetual preferred equity program.
  • Greater utilization of cost efficient revolving credit facility.
  • Increased originations in senior secured debt.
  • Selected equity investments to deliver targeted risk-adjusted yields and total returns.
  • Deploying available capital from current underleveraged balance sheet.

Headwinds

  • Forward-looking statements are affected by unknowable future events and conditions.
  • Actual developments and results are highly likely to vary materially from any forward-looking statements.
  • Safe harbor for forward-looking statements does not apply to business development companies.
  • Company undertakes no obligation to update any such statement now or in the future.
  • No specific negative factors mentioned in the provided text.

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 Q4 2020

Historical avgQ4 2020

+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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