Prospect Capital (NASDAQ:PSEC) Q4 net investment income beats consensus, up from Q3



Prospect Capital (NASDAQ: PSEC) fiscal fourth quarter net investment income, beating analysts’ average estimate, increased from the prior quarter and the prior year quarter, although creations were down. Total investment income also increased from the prior period and the prior year.

Net investment income for the fourth quarter of fiscal year of $0.21 per basic share compared to consensus $0.19, $0.20 in Q3 and $0.19 in Q4 2021. Total investment income for the quarter ended June 30, 2022 was $184.6 million, beating analysts’ average estimate of $176.6 million from $181.4 million in the prior quarter and $157.3 million in the the previous year.

Net asset value of $10.48 per share as of June 30, 2022 decreased from $10.81 per share as of March 31, 2022.

The Prospect Capital stock (PSEC) has increased by 0.5% in Monday after-hours trading.

Total originations were $477.4m in the quarter, compared to $564.8m in Q3. So far in the first quarter of the fiscal year, total creations are $159.3 million. Total refunds were $151.1m in fiscal Q4 versus $184.5m in Q3.

Q4 operating expenses of $94.7m compared to $94.4m in Q3 and $84.1m in Q4 2021.

Unsecured debt as a percentage of total debt was 69.7% compared to 73.3% as of March 31, 2022.

Net of the cash asset hedge, the debt ratio was down 275% from 284% in Q3 and 277% in Q4 2021.

Conference call on August 30 at 11 p.m. ET.

SA contributor BDC Buzz considers PSEC stocks likely overvalued, but explains why its bonds might be worth a look


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