Golub Capital BDC (GBDC) Q4 2024 Earnings Call Transcript
Adjusted NII per share $0.47, down from $0.49 per share, reflecting a voluntary $0.03 per share incentive fee waiver and fair value write-downs on underperforming loans.
Adjusted NII return on equity 12.4%, down from 12.9% year-over-year, due to the impact of fair value markdowns and increased nonaccruals.
Adjusted net income per share $0.36, down from $0.49 per share, primarily due to net realized and unrealized losses of $0.11 per share.
NAV per share $15.19, down $0.13 from the prior quarter, but up $0.17 year-over-year, due to high distributions paid out.
Distributions paid $0.49 per share, including a base distribution of $0.39 and a supplemental distribution of $0.05, reflecting a strong return of capital to shareholders.
Debt to equity ratio 1.09 turns, increased from 1.02 turns, reflecting a strategic increase in leverage post-merger.
Net funds growth $368 million, representing a 5% increase in total portfolio size, driven by nearly $1 billion in gross originations.
Weighted average cost of debt 6.8%, increased by 30 basis points due to the assumption of GBDC 3 debt funding facilities.
Weighted average net investment spread 5.2%, down 60 basis points sequentially, due to a decrease in investment income yield and an increase in the cost of debt.
Nonaccruals 1.2% of total debt investments at fair value, up from 1% in the previous quarter, indicating a slight increase in credit stress.
Annualized dividend yield 11.3%, based on GBDC's NAV per share as of September 30, 2024, reflecting strong distribution coverage.
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PagSeguro and Others Show Weak EPS Revisions Ahead of Earnings Season
- EPS Revision Ratings: Mid-cap financial stocks like PagSeguro Digital Ltd. (PAGS) and Inter & Co, Inc. (INTR) have received a D+ EPS revision grade, indicating weakened momentum in analyst earnings expectations, which may affect investor confidence.
- Quant Rating Performance: PagSeguro's quant rating stands at 3.23, Inter's at 3.18, and Golub Capital BDC (GBDC) at 3.03, all below the bullish threshold of 3.5, suggesting these companies face challenges in earnings growth.
- Market Reaction Expectations: As the earnings season approaches, analysts' downward revisions of earnings expectations for these companies may lead to increased stock price volatility, prompting investors to assess risks carefully.
- Industry-Wide Trends: Overall, the soft EPS revisions in the financial sector may reflect signs of economic slowdown, and investors should monitor policy risks and market volatility's impact on future performance.
Golub Capital BDC to Report Q4 2025 Financial Results on February 4, 2026
- Earnings Report Schedule: Golub Capital BDC will release its financial results for the quarter ending December 31, 2025, on February 4, 2026, after market close, emphasizing the company's commitment to transparency and investor communication.
- Conference Call Details: The company will host an earnings conference call at 10:00 a.m. (Eastern Time) on February 5, 2026, which is expected to attract significant attention from investors and analysts, thereby enhancing market confidence.
- Participation Instructions: Interested parties can join the call by dialing the specified numbers 10-15 minutes prior, ensuring timely communication and interaction, which improves the effectiveness of investor relations.
- Replay Availability: An archived replay of the call will be available until 11:59 p.m. (Eastern Time) on February 12, 2026, allowing investors who cannot attend live to access the information, reflecting the company's attentiveness to investor needs.
