NASDAQ$PSEC

Prospect Capital Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Announced financial results for the fiscal quarter and year ended June 30, 2023, and declared stable monthly dividends through October 2023 of $0.06 per common share.

Prospect Capital Corporation reported a net investment income of $112.779 million, or $0.23 per share, for the quarter ended June 30, 2023. The company declared monthly dividends of $0.06 per common share through October 2023. Since inception through our October 2023 declared distribution, Prospect will have distributed $20.40 per share to original common shareholders, representing 2.2 times June 2023 common NAV per share, aggregating over $4.01 billion in cumulative distributions to all common shareholders.

  • Net Investment Income (NII) for the quarter was $112.779 million, or $0.23 per share.
  • Distributions to common shareholders were $0.18 per share for the quarter.
  • NAV per Common Share was $9.24 as of June 30, 2023.
  • The company declared monthly dividends of $0.06 per common share through October 2023.

Headline financials

Total Revenue

$222M

No prior period
EPS (adj)

$0.23

No prior period
NII per share

$0.23

No prior period
NAV per share

$9.24

No prior period
Distributions per share

$0.18

No prior period
Asset coverage

304.0%

No prior period
Net Income

-$14M

No prior period
Operating Income

$113M

No prior period
Cash & Equivalents

$95.6M

No prior period
Total Assets

$7.86B

No prior period

Revenue & EPS history

Prospect Capital · Revenue · Quarterly

$222M

Q4 2023
Beat estimate in 3 of 12 quarters(25%)
ActualEstimate

Revenue by segment

Prospect Capital · $222M total across 3 segments · Q4 2023

  • Interest income
    $197M
  • Other income
    $22.7M
  • Dividend income
    $1.36M

Forward guidance

Prospect expects to declare November 2023, December 2023, and January 2024 distributions to common shareholders in November 2023. Drivers focused on enhancing accretive NII per share growth include (1) our $2.05 billion targeted 6.50% perpetual preferred stock offerings (which could potentially be increased in capacity in an accretive fashion), (2) greater utilization of our cost efficient revolving floating rate credit facility, (3) increase of short-term Libor and SOFR rates based on Fed tightening to boost asset yields, and (4) increased primary and secondary originations of senior secured debt and selected equity investments targeting attractive risk-adjusted yields and total returns as we deploy dry powder from our underleveraged balance sheet.

Tailwinds

  • Targeted $2.05 billion 6.50% perpetual preferred stock offerings.
  • Greater utilization of cost-efficient revolving floating rate credit facility.
  • Increase of short-term Libor and SOFR rates based on Fed tightening to boost asset yields.
  • Increased primary and secondary originations of senior secured debt and selected equity investments targeting attractive risk-adjusted yields and total returns.
  • Deployment of dry powder from underleveraged balance sheet.

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 2023

Historical avgQ4 2023

+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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