U.S. business development company's fiscal Q3 adjusted net income missed analyst expectations
Net investment income per share held steady at $0.33 from the prior quarter
Company repurchased 1.1 million shares for $14.4 million during the quarter
Key details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
$0.22
Q3 Adjusted Net Income
Miss
$57 million
$84.65 million (6 analysts)
Q3 Net Asset Value Per Share
$14.25
Result drivers
Portfolio underperformance - The company said realized and unrealized losses were mainly due to underperformance and non-accrual of certain portfolio companies, as well as realized losses from restructuring two portfolio companies.
Equity investment exits - Net realized gains on the exit of equity investments in multiple portfolio companies partially offset losses.
Reversal of prior depreciation - Some unrealized depreciation was reversed due to fair value adjustments related to earlier market-wide credit spread widening.
Outlook and analyst coverage
Golub Capital BDC did not provide specific guidance for future quarters or the full year in the press release.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell".
The average consensus recommendation for the investment management & fund operators peer group is "hold".
Wall Street's median 12-month price target for Golub Capital BDC Inc is $14.00, about 9.1% above its July 31 closing price of $12.83.
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago.
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