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 +0.21% change in stock price 10 days leading up to the earnings, and a -0.95% change 10 days following the report. On the earnings day itself, the stock moves by +0.48%. 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
383.00M
12.65%
-0.78%
Gross Margin
--
--
--
Operating Margin
74.67%
8.96%
3.68%
Net Margin
38.38%
44.99%
-7.41%
EPS
0.52
62.50%
-8.77%
No Data Available
FSK Earnings Analysis
FS KKR Capital Corp Corporation (FSK.N) Earnings Conference Call
Positive
Credit Quality Improvement: During 2024, FSK reduced non-accrual investments by 58%, improving credit quality and overall portfolio stability.
Capital Deployment Strategy: FSK deployed $4.7 billion of capital into new transactions, demonstrating disciplined origination despite market conditions.
Shareholder Distribution Achievement: The company achieved its distribution goal, providing shareholders with a total of $2.80 per share in distributions, including special distributions.
Strong Financial Stability: FSK maintained a strong balance sheet, issuing $1.3 billion in unsecured notes during the year to support financial stability.
Yield and Total Return: In 2024, FSK delivered a 12.1% yield on average net asset value and a total return of 23% to shareholders.
Net Investment Income Report: The company reported a net investment income of $0.61 per share and adjusted net investment income of $0.66 per share, aligning closely with guidance.
Investment Portfolio Overview: FSK's investment portfolio had a fair value of $13.5 billion, with a focus on senior secured investments, comprising 58% first lien loans.
Debt Investment Yield Analysis: The weighted average yield on accruing debt investments was 11%, indicating strong income generation despite a slight decrease from the previous quarter.
Available Liquidity Advantage: FSK's available liquidity stood at $4.8 billion, providing a competitive advantage for future investments.
Negative
Non-Accrual Investment Trends: Non-accrual investments increased to 3.7% on a cost basis and 2.2% on a fair value basis, compared to 3.8% and 1.7% respectively in the previous quarter, indicating a slight deterioration in credit quality.
Investment Income Decline: Total investment income decreased by $34 million quarter-over-quarter to $407 million, primarily due to a decline in base rates and delayed closings of new investments, which negatively impacted fee income.
Decline in Debt Yield: The weighted average yield on accruing debt investments decreased by 50 basis points to 11%, reflecting a decline in base rates and spread compression, which could affect future income generation.
Stable Operational Costs: Management fees decreased by only $1 million quarter-over-quarter, indicating that operational costs remain relatively stable despite declining income, which could pressure margins.
Net Asset Value Decline: The net asset value per share decreased from $23.82 to $23.64, reflecting a reduction in the overall value of the investment portfolio, which may concern investors about asset performance.
FSK FAQs
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FSK Earning Call Sentiment
FS KKR Capital Corp (FSK) Q4 2024 Earnings Call Transcript
FSK.N
-1.72%Positive
The earnings call presents mixed signals: slight misses in net investment income, decreased total investment income, and reduced interest income are offset by positive shareholder returns and improved credit metrics. The Q&A reveals some concerns over market conditions and management's unclear responses, but no major red flags. Overall, despite some challenges, the company's financial health and shareholder returns remain stable, leading to a neutral sentiment.
