NYSE$MAIN

Main Street Capital Corp. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Main Street Capital reported a decrease in net investment income and distributable net investment income, but an increase in net assets resulting from operations compared to the same quarter last year.

Main Street Capital Corporation announced its financial results for the second quarter of 2020, featuring a net investment income of $0.48 per share and distributable net investment income of $0.52 per share. The company's net asset value stood at $20.85 per share. Despite economic challenges, Main Street saw success in lower middle market and private loan investment activities.

  • Net investment income was $31.3 million, or $0.48 per share.
  • Distributable net investment income was $34.1 million, or $0.52 per share.
  • Total investment income reached $52.0 million.
  • The company completed $84.6 million in total lower middle market portfolio investments.

Headline financials

Total Revenue

$52M

Previous: $61.3M-15.2%
EPS (adj)

$0.48

Previous: $0.63-23.8%
Return on Equity

20.9%

No prior period
LMM Portfolio Companies

69

No prior period
LMM Portfolio Fair Value

$1.19B

No prior period
Private Loan Portfolio Companies

64

No prior period
Private Loan Portfolio Fair Value

$654M

No prior period
Middle Market Portfolio Companies

44

No prior period
Middle Market Portfolio Fair Value

$411M

No prior period
Net Income

$31.3M

No prior period
Operating Income

$31.3M

No prior period
Cash & Equivalents

$68.5M

No prior period
Total Assets

$2.55B

No prior period

Revenue & EPS history

Main Street Capital · Revenue · Quarterly

$52M

Q2 2020-15.2%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Main Street Capital · $52M total across 3 segments · Q2 2020

  • Interest Income
    $41.6M-12.0%
  • Dividend Income
    $7.8M-38.9%
  • Fee Income
    $2.64M+101.7%

Forward guidance

Main Street anticipates navigating the economic environment and the effects of the COVID-19 pandemic, and aims to complete the transaction making the External Investment Manager the sole adviser and administrator to HMS Income.

Tailwinds

  • Prioritizing the health and well-being of employees and portfolio companies' employees.
  • Selectively executing on new investment opportunities.
  • Actively supporting portfolio companies.
  • Conservative capital structure.
  • Significant liquidity position.

Headwinds

  • Challenging economic environment due to COVID-19 pandemic.
  • Potential impacts of COVID-19 on business and operations.
  • Potential impacts of COVID-19 on liquidity and access to capital.
  • Potential impacts of COVID-19 on the U.S. and global economies.
  • Changes in laws and regulations or business, political and/or regulatory conditions.

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 2020

Historical avgQ2 2020

+0.8%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+0.1%

Avg return

30 days after

66%

42 / 64 earnings

Positive

+8.1%

Q1 2010

Best reaction

-9.4%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.4%-10.0%-8.4%
Q4 2025-2.2%+1.4%-11.3%
Q3 2025+2.9%+3.5%+6.3%
Q1 2025-0.2%+0.3%+8.4%
Q4 2024+3.2%-1.5%-3.9%
Q3 2024+0.6%+1.4%+7.3%
Q2 2024-0.7%-1.1%-0.6%
Q1 2024-2.4%-1.6%-3.7%
Q4 2023+1.0%+2.7%+2.5%
Q3 2023+3.5%+2.2%+6.1%
Q2 2023-0.2%-1.7%-4.3%
Q1 2023-0.7%-0.4%-0.7%
Q4 2022+3.0%+6.7%-1.3%
Q3 2022+4.6%+4.7%+2.0%
Q2 2022+1.2%-0.9%-9.7%
Q1 2022-1.5%-5.5%-8.6%
Q4 2021+2.7%+2.0%+0.3%
Q3 2021+4.0%+4.4%+0.4%
Q2 2021+0.8%+2.3%+0.5%
Q1 2021-1.0%-3.6%-2.2%
Q4 2020-0.7%-0.6%+6.3%
Q3 2020+0.0%+8.3%+12.8%
Q2 2020+3.2%+4.8%-4.0%
Q1 2020+4.0%+6.5%+32.5%
Q4 2019-8.0%-5.0%-41.2%
Q3 2019-3.5%-2.3%-1.4%
Q2 2019-0.0%+1.8%+3.7%
Q1 2019+2.2%+2.2%+2.6%
Q4 2018-1.8%-4.1%-4.9%
Q3 2018-0.4%+4.6%+2.5%
Q2 2018+2.1%+2.8%+1.9%
Q1 2018+2.5%+3.1%+2.2%
Q4 2017+0.5%+0.1%+2.3%
Q3 2017+2.2%+3.4%+0.1%
Q2 2017-0.4%+2.1%+0.2%
Q1 2017+0.7%-0.3%-3.7%
Q4 2016+0.2%-1.1%-0.6%
Q3 2016+1.0%+4.1%+10.5%
Q2 2016+1.7%+1.1%+1.8%
Q1 2016+1.0%
Q4 2015+3.3%
Q3 2015-1.3%
Q2 2015-2.4%
Q1 2015+1.1%
Q4 2014+0.1%
Q3 2014+2.2%
Q2 2014+2.9%
Q1 2014-2.6%
Q4 2013-0.7%
Q3 2013+1.0%
Q2 2013+0.9%
Q1 2013+2.6%
Q4 2012+2.9%
Q3 2012+2.4%
Q2 2012+1.7%
Q1 2012+0.7%
Q4 2011+1.5%
Q3 2011+0.9%
Q2 2011-9.4%
Q1 2011+4.3%
Q4 2010+2.3%
Q3 2010+5.1%
Q2 2010+2.1%
Q1 2010+8.1%

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