NYSE$BBDC

Barings Bdc Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong second quarter results driven by increased investment income and solid credit quality.

Barings BDC reported a strong second quarter with increased investment income and solid credit characteristics. The company's net asset value per share increased by 1.5% compared to the prior quarter, driven by net unrealized appreciation on the investment portfolio, net investment income exceeding the dividend, and share repurchases.

  • Net investment income was $33.6 million, or $0.31 per share.
  • Net asset value per share increased to $11.34.
  • The company extended the maturity of its senior secured credit facility with ING to February 2026.
  • The board declared a dividend increase of 4.0% to $0.26 per share for the third quarter.

Headline financials

Total Revenue

$2.53M

Previous: $55.6M-95.5%
EPS (adj)

$0.31

Previous: $0.29+6.9%
Weighted Average Yield on Performing Debt Investments

10.4%

Previous: 7.6%+36.8%
Debt-to-Equity Ratio

1.24

Previous: 1.23+0.8%
Free Cash Flow

$79.8M

No prior period
Net Income

$79.8M

Previous: -$25M+419.2%
Operating Income

-$18.8M

Previous: $31.8M-159.3%
Gross Profit

$2.33M

No prior period
Cash & Equivalents

$63.4M

Previous: $138M-54.1%
Total Assets

$2.73B

Previous: $2.83B-3.5%

Revenue & EPS history

Barings BDC · Revenue · Quarterly

$2.53M

Q2 2023-95.5%vs Q2 2022
Beat estimate in 5 of 13 quarters(38%)
ActualEstimate

Revenue by segment

Barings BDC · $32.1M total across 3 segments · Q1 2022

  • Non-Control / Non-Affiliate
    $31.6M
  • Control Investments
    $273K
  • Affiliate Investments
    $172K

Forward guidance

Barings BDC did not provide specific forward guidance in this earnings report. However, the report highlights the company's strong performance in the second quarter and the board's decision to increase the dividend, suggesting a positive outlook.

Tailwinds

  • Extension of senior secured credit facility maturity.
  • Dividend increase of 4.0% to $0.26 per share.
  • Strong investment income.
  • Solid credit quality within holdings.
  • Increase in net asset value per share.

Headwinds

  • No specific forward guidance provided.
  • Net realized losses on investments and foreign currency transactions.
  • Unrealized depreciation related to foreign currency transactions.
  • Potential risks and uncertainties that could affect financial results.
  • Dependence on Barings LLC for management and investment opportunities.

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 2023

Historical avgQ2 2023

+1.3%

Avg return

Earnings day

+0.9%

Avg return

5 days after

-1.2%

Avg return

30 days after

71%

15 / 21 earnings

Positive

+6.0%

Q2 2024

Best reaction

-3.9%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%-3.2%-6.2%
Q4 2025+0.9%-2.3%-10.5%
Q3 2025-0.7%-1.5%-2.1%
Q1 2025+1.0%+3.1%+3.3%
Q4 2024+2.7%-3.0%-8.7%
Q3 2024+3.1%+2.7%+2.7%
Q2 2024+6.0%+3.7%+3.5%
Q1 2024-1.9%+0.9%+2.2%
Q4 2023+5.8%+8.6%-0.8%
Q3 2023-3.9%-3.8%-6.2%
Q2 2023+5.8%+7.1%+5.1%
Q1 2023-2.4%-3.2%+7.1%
Q4 2022+0.3%+0.7%-9.9%
Q3 2022+2.9%+1.1%-3.1%
Q2 2022+2.1%+2.7%-5.0%
Q1 2022+1.5%+0.4%+1.1%
Q4 2021+0.6%+0.8%-3.3%
Q3 2021+0.7%+0.0%-4.6%
Q2 2021+2.7%+2.9%+3.5%
Q1 2021+1.3%+0.4%+3.2%
Q4 2020-0.2%+0.9%+3.8%

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