Seeking Alpha

Prospect Capital results hurt by slow origination activity

  • FQ4 net investment income of $84.1M or $0.25 per share is well south of expectations for $0.32 and stands against $98.5M and $0.31 one year ago. Originations slipped to $444M in FQ4 from $1.3B a quarter previous.
  • The quarterly dividend is roughly $0.33 per share.
  • The debt-to-equity ratio of 72.9% is up from 67.9% at the end of last quarter and 55.7% a year ago. Annualized yield of portfolio of 12.1% slides 40 basis points from the March quarter.
  • Net asset value of $10.56 per share slips from $10.68 at end of March quarter. Today's closing stock price was $10.98.
  • Conference call at 11 ET
  • Previously: Prospect Capital misses by $0.07, misses on revenue
  • PSEC -1.9% AH

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Comments (14)
  • locutus49
    , contributor
    Comments (1057) | Send Message
     
    Finally another buying opportunity.
    25 Aug 2014, 05:37 PM Reply Like
  • kingdad
    , contributor
    Comments (1114) | Send Message
     
    All that SEC crapola and the one bad Investment and the loss of a deal hurt the portfolio. not the end of the world. Since they just closed a big deal that in no way could have helped this Qtr. Long PSEC and Holding steady for the long Haul.
    25 Aug 2014, 05:37 PM Reply Like
  • klrogers
    , contributor
    Comment (1) | Send Message
     
    Hurt by SEC.
    25 Aug 2014, 06:05 PM Reply Like
  • mmlee11
    , contributor
    Comments (59) | Send Message
     
    Must be prepared for the naysayers for the next couple of weeks. This is not really a surprise given the circumstances of recent.
    25 Aug 2014, 06:20 PM Reply Like
  • DontFollowMyAdviceImaDummy
    , contributor
    Comments (65) | Send Message
     
    on the bright side they did make some money / just not as much as the prediction monkeys expected... after the brief hiatus with kmi and tpl it looks like my stock buying curse has returned :-/
    25 Aug 2014, 06:30 PM Reply Like
  • Scenic Dr
    , contributor
    Comments (150) | Send Message
     
    Don'tFollow...Your bio is funny! HaHa!!!
    25 Aug 2014, 11:58 PM Reply Like
  • Joe Lunchbox
    , contributor
    Comments (546) | Send Message
     
    More shares at dividend time.
    25 Aug 2014, 06:55 PM Reply Like
  • xxavatarxx
    , contributor
    Comments (3111) | Send Message
     
    I don't know why.. but when they miss I always want to go back to what they are paying themselves.
    They ate up 6 cents or so just on the incentive fee's.

     

    Total Investment Income 182,840

     

    Base management fee 32,161
    Income incentive fee 21,037
    Total investment advisory fees 53,198
    25 Aug 2014, 08:07 PM Reply Like
  • Albert Alfonso
    , contributor
    Comments (2290) | Send Message
     
    Fees are actually down Q/Q.
    26 Aug 2014, 07:26 AM Reply Like
  • drmwsunner
    , contributor
    Comments (124) | Send Message
     
    PSEC presents you with another buying opportunity. We knew they would probably miss, and NAV would slip. Next qtr should be much better with more originations. Dividend stock par excellence, so for me, this is a long term hold with 10,084 shares in my pocket. I really don't know why people trade this stock. Just buy it for the dividends.
    25 Aug 2014, 08:09 PM Reply Like
  • asapco
    , contributor
    Comments (58) | Send Message
     
    Not that I disagree, but why do you feel originations will be much better? PSEC states in their press release that they are willing to endure yield compression from increased competition as opposed to making riskier loans. I know they just closed on a biggy, but why do you feel it will pick up in the quarter?
    26 Aug 2014, 12:12 AM Reply Like
  • drmwsunner
    , contributor
    Comments (124) | Send Message
     
    They have no choice or there will be another fiasco next quarter.
    27 Aug 2014, 09:27 AM Reply Like
  • critterlitter
    , contributor
    Comments (419) | Send Message
     
    I'm adding 1000 shares on this news on ex-div. Another buying opportunity...
    25 Aug 2014, 10:51 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (4371) | Send Message
     
    Still DRIPPING all the way home.
    26 Aug 2014, 09:50 AM Reply Like
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