FSK Earnings Prediction
The chart below shows how FSK performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FSK sees a +0.16% change in stock price 10 days leading up to the earnings, and a -0.40% change 10 days following the report. On the earnings day itself, the stock moves by +0.63%. This data can give you a slight idea of what to expect for the next quarter's release.
FSK Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
386.00M
-22.18%
17.33%
Gross Margin
--
--
--
Operating Margin
72.02%
-6.49%
7.70%
Net Margin
41.45%
-22.42%
29.90%
EPS
0.57
-40.00%
54.05%
No Data Available
FSK Earnings Analysis
FS KKR Capital Corp. Common Stock Corporation (FSK.N) Earnings Conference Call
Positive
Net Investment Income Beat: 1. Strong Net Investment Income: FSK generated net investment income of $0.77 per share, exceeding public guidance of approximately $0.72 per share.
Total Distribution Yield: 2. Robust Total Distributions: The company declared a total fourth-quarter distribution of $0.70 per share, resulting in $2.90 per share of total distributions for 2024, equating to a 12.2% yield on the net asset value of $23.82 per share.
New Investment Activity: 3. Significant New Investments: During the third quarter, FSK originated approximately $1.1 billion of new investments, with 84% in first-lien loans, indicating strong investment activity.
Investment Quality Metrics: 4. Improved Portfolio Metrics: The weighted average EBITDA of new direct lending investments was approximately $211 million, with a leverage ratio of 6.3 times, showcasing the quality of new investments.
Ample Liquidity Foundation: 5. Strong Liquidity Position: FSK ended the quarter with ample liquidity totaling approximately $4.4 billion, providing a solid foundation for future investments.
Negative
Investment Portfolio Decline: 1. Decline in Investment Portfolio Value: The fair value of the investment portfolio decreased to $13.9 billion from $14.1 billion, primarily due to unrealized depreciation in three investments.
Credit Quality Deterioration: 2. Increased Non-Accruals: Non-accruals represented 3.8% of the portfolio on a cost basis, up from 4.3% in the previous quarter, indicating a slight deterioration in credit quality.
Declining Debt Investment Yield: 3. Decreased Weighted Average Yield: The weighted average yield on accruing debt investments fell to 11.5%, a decrease of 50 basis points from the previous quarter, reflecting lower spreads and repayments of higher-yielding investments.
Fourth Quarter Income Decline: 4. Lower Expected Fourth Quarter Income: The guidance for fourth quarter adjusted net investment income is expected to decrease to approximately $0.68 per share, down from $0.74 per share in the third quarter, indicating a decline in income generation.
Rising Interest Expense: 5. Increased Interest Expense: Interest expense rose to $118 million, an increase of $3 million quarter-over-quarter, contributing to pressure on net investment income.
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FSK Earning Call Sentiment
FS KKR Capital Corp (FSK) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
FSK.N
0.62%Positive
The earnings call summary indicates strong financial performance with net investment income exceeding guidance, a high yield on debt investments, and a decrease in non-accruals. Additionally, the company maintains a robust liquidity position. The Q&A session reveals management's confidence in sustaining dividends and a positive outlook on the investment pipeline, despite slower M&A activity. Although there are slight concerns about yield compression and slower revenue growth, the overall sentiment is positive. The company's strategic focus on senior secured investments and defensive industries further supports a positive stock price reaction.