PENNANTPARK FLOATING RATE CAPITAL Reports Third Quarter Fiscal Year 2023 Earnings Results as of June 30 2023
August 13, 2023
🌥️Earnings Overview
PENNANTPARK FLOATING RATE CAPITAL ($NYSE:PFLT) announced its financial results for the third quarter of fiscal year 2023, ended June 30 2023. Compared to the third quarter of the preceding year, total revenue increased to USD 7.3 million and net income was USD 5.6 million – an improvement from the respective figures of -4.2 million and -5.1 million.
Market Price
The stock opened at $11.4 and closed at $11.3, indicating a 0.6% decrease from its previous closing price of 11.3. Although the stock did not show much movement on Wednesday, PENNANTPARK FLOATING RATE CAPITAL reported significantly higher revenues and earnings compared to the same quarter last year. This was driven by strong organic growth from existing investments as well as interest income from new investments. The company also experienced an increase in operating expenses of 5%, largely due to higher legal and administrative expenses associated with the growing business.
Overall, PENNANTPARK FLOATING RATE CAPITAL is pleased with the results from its third quarter fiscal year 2023. Despite the stock’s small decline on Wednesday, it is expected to remain relatively stable as investors recognize the company’s strong financial performance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for PFLT. More…
| Total Revenues | Net Income | Net Margin |
| -0.28 | -1.92 | 677.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for PFLT. More…
| Operations | Investing | Financing |
| 126.98 | – | -108.24 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for PFLT. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.18k | 574.8 | 10.96 |
Key Ratios Snapshot
Some of the financial key ratios for PFLT are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -16.5% | – | – |
| FCF Margin | ROE | ROA |
| -44710.9% | -0.5% | -0.2% |
Analysis
GoodWhale’s analysis of PENNANTPARK FLOATING RATE CAPITAL shows that it has been classified as a ‘cow’, meaning it has a track record of paying out consistent and sustainable dividends. This type of company may be interesting to investors looking for a steady income. However, our Star Chart gives PENNANTPARK FLOATING RATE CAPITAL a health score of only 1/10 due to its weak cashflows and debt. This indicates that the company is less likely to be able to pay off debt or fund future operations. Other areas that are weak include asset, growth, and profitability. Therefore, while the dividends may be attractive, investors should be aware of the risks associated with the company’s financial situation. More…
Peers
PennantPark Floating Rate Capital Ltd is an established player in the floating rate loan and mezzanine debt markets, competing with Princeton Capital Corp, Great Elm Capital Corp, and OFS Capital Corp for investment opportunities. This highly competitive environment has created a strong sense of rivalry between these companies, as each strives to secure the most attractive investments and capitalize on the best opportunities available.
– Princeton Capital Corp ($OTCPK:PIAC)
Princeton Capital Corp is an independent financial services firm that provides capital markets and structured finance services to institutional clients. The company has a market cap of 38.56M as of 2023, indicating the total value of the company in terms of market share. The Return on Equity (ROE) of 12.71% indicates that the company is fairly profitable when compared to its peers. Princeton Capital Corp’s financial services are tailored to meet the needs of its customers, providing a variety of capital markets and structured finance solutions.
– Great Elm Capital Corp ($NASDAQ:GECC)
Great Elm Capital Corp is a publicly-traded business development company based in Massachusetts. The company provides financing and management expertise to small and middle-market companies across a wide range of industries. As of 2023, the company’s market capitalization stands at 71.46 million dollars, indicating that it is a relatively small operation. The company has been struggling financially, evidenced by its Return on Equity of -19.61%. This suggests that the company has been using more debt than equity for financing, resulting in lower returns for shareholders.
– OFS Capital Corp ($NASDAQ:OFS)
OFS Capital Corp is a business development company that provides financial solutions to middle-market companies. The company has a market cap of 133.66 million dollars as of 2023, which is reflective of its performance in the market. Furthermore, it has a return on equity of 2.34%, which indicates that the company is able to generate a steady and healthy stream of profits for its shareholders. This is an impressive feat for a business development company given the volatility in the market.
Summary
Investors looking to benefit from PENNANTPARK FLOATING RATE CAPITAL’s performance in the third quarter of fiscal year 2023 should be encouraged by the company’s impressive results. Total revenue rose to USD 7.3 million and net income jumped to USD 5.6 million, a significant improvement from the figures for the prior year period of -4.2 million and -5.1 million respectively. Clearly the company’s business strategies and execution have been successful, making it a lucrative investment opportunity for those interested in capitalizing on its growth potential.
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