NYSE$BBDC

Barings Bdc Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported fourth quarter and full year 2023 results, and announced a quarterly cash dividend of $0.26 per share.

Barings BDC reported strong Q4 results driven by the strength of its middle market loan portfolio and defensive underwriting approach. The company out-earned its dividend by approximately 20%, increased net investment income from the previous quarter, and repurchased shares as part of its share repurchase program.

  • Net investment income was $33.4 million, or $0.31 per share.
  • Net increase in net assets resulting from operations was $29.9 million, or $0.28 per share.
  • NAV per share as of December 31, 2023, was $11.28, compared to $11.25 as of September 30, 2023.
  • The company made new investments totaling $100.9 million and investments in existing portfolio companies totaling $79.1 million.

Headline financials

Total Revenue

$75.8M

Previous: $63.5M+19.5%
EPS (adj)

$0.31

Previous: $0.34-8.8%
Weighted Average Yield on Performing Debt Investments

10.5%

Previous: 9.7%+8.2%
Debt-to-Equity Ratio

1.21

Previous: 1.22-0.8%
Net Debt-to-Equity Ratio

1.15

Previous: 1.12+2.7%
Net Income

$33.4M

Previous: -$1.25M+2767.5%
Operating Income

$34.6M

Previous: $37.6M-8.0%

Revenue & EPS history

Barings BDC · Revenue · Quarterly

$75.8M

Q4 2023+19.5%vs Q4 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 aims to enhance its liquidity and financial stability through strategic debt issuances and remains focused on delivering strong risk-adjusted returns to its shareholders.

Tailwinds

  • Issuance of $300 million in 5-year unsecured notes at a 7.00% coupon improves liquidity position.
  • Unsecured debt issuance enhances operational stability.
  • Optimization of liability structure.
  • Expansion of maturity ladder out to 2029.
  • Focus on delivering strong risk-adjusted returns to shareholders.

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

+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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