PSEC Reports NII of $0.2440 compared to a Div of $0.28 paid in the quarter - forward dividend is $0.249/share
What They Earned Prospect Capital Corporation (PSEC) reported for Q1-15 Total investment income of $191.350 million [$0.5338/share]; Net investment income of $87.449 million [$0.2440/share]; and a Net Increase in Net Assets Resulting from Operations of $81.492 million [$0.2273/share]. PSEC's net asset value per share was $10.30 compared $10.35 last quarter.
For context, here is the last six quarter's of data:
Q1-15 | Q4-14 | Q3-14 | Q2-14 | Q1-14 | Q4-13 | |
Total investment income | 191.350 | 198.883 | 202.012 | 182.840 | 190.327 | 178.090 |
Net investment income | 87.449 | 91.325 | 94.463 | 84.148 | 98.523 | 92.215 |
Investments @ fair value | 6.603 | 6.524 | 6.253 | 6.254 | 6.006 | 4.886 |
Wt Av Share Count | 358.449 | 354.100 | 343.359 | 342.627 | 333.500 | 287.016 |
TII/share | $0.5338 | $0.5615 | $0.5796 | $0.5336 | $0.5707 | $0.6205 |
NII/share | $0.2440 | $0.2579 | $0.2710 | $0.2456 | $0.2954 | $0.3213 |
NAV/share | $10.30 | $10.35 | $10.47 | $10.56 | $10.68 | $10.73 |
Wt Av Yield | 12.4% | 12.3% | 11.9% | 12.1% | 12.5% | 12.9% |
The NII at $0.2440/share was well below forecast and below the trend - unless the trend if 'falling NII"
Earnings Est | Current Qtr. Mar 15 | Next Qtr. Jun 15 | Current Year Jun 15 | Next Year Jun 16 |
---|---|---|---|---|
Avg. Estimate | 0.26 | 0.27 | 1.06 | 1.08 |
No. of Analysts | 9.00 | 9.00 | 9.00 | 8.00 |
Low Estimate | 0.25 | 0.26 | 1.04 | 1.04 |
High Estimate | 0.28 | 0.28 | 1.10 | 1.10 |
Year Ago EPS | 0.31 | 0.25 | 1.19 | 1.06 |
Even the TII (total investment income) or revenue at $191 million was below expectations
Revenue Est | Current Qtr. Mar 15 | Next Qtr. Jun 15 | Current Year Jun 15 | Next Year Jun 16 |
---|---|---|---|---|
Avg. Estimate | 201.51M | 207.20M | 808.28M | 869.63M |
No. of Analysts | 5 | 5 | 7 | 6 |
Low Estimate | 198.30M | 200.86M | 791.24M | 814.90M |
High Estimate | 206.90M | 215.60M | 823.40M | 970.20M |
Year Ago Sales | 190.33M | 182.84M | 712.29M | 808.28M |
Sales Growth (year/est) | 5.90% | 13.30% | 13.50% | 7.60% |
The trend in earnings disappointments is now 4 out of the last five. Here is how Yahoo recounts the prior four:
Earnings History | Mar 14 | Jun 14 | Sep 14 | Dec 14 |
---|---|---|---|---|
EPS Est | 0.32 | 0.32 | 0.28 | 0.27 |
EPS Actual | 0.31 | 0.25 | 0.28 | 0.26 |
Difference | -0.01 | -0.07 | 0.00 | -0.01 |
Surprise % | -3.10% | -21.90% | 0.00% | -3.70% |
The good news - PSEC has one of the lowest price/NAVs and price to earnings ratios in the sector. As bad as the earnings news was - it was (IMHO) priced for an even worse performance. So the share price should - logically - go up on this bad (but not really bad) earnings news.