MFIC Earnings Prediction
The chart below shows how MFIC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MFIC sees a -1.11% change in stock price 10 days leading up to the earnings, and a +2.23% change 10 days following the report. On the earnings day itself, the stock moves by -0.04%. This data can give you a slight idea of what to expect for the next quarter's release.
MFIC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
69.14M
-8.35%
-2.23%
Gross Margin
--
--
--
Operating Margin
79.54%
-0.67%
-3.96%
Net Margin
34.80%
-21.07%
-7.89%
EPS
0.26
-49.02%
-16.13%
No Data Available
MFIC Earnings Analysis
MidCap Financial Investment Corp Corporation (MFIC.O) Earnings Conference Call
Positive
Net Investment Income Performance: Net investment income (NII) per share of $0.40 for Q4 and $1.71 for the full year, indicating strong profitability.
Return on Equity Performance: Annualized return on equity (ROE) of 10.5% for the quarter and 11.2% for the year, showcasing effective capital management.
New Investment Commitments: Made $255 million in new commitments during the December quarter and $1.06 billion for the full year, reflecting active investment strategy.
Lending Market Conditions: Observed a modest increase in spreads on new commitments, indicating favorable market conditions for lending.
Merger Enhances Capital Deployment: Successful merger with Apollo Senior Floating Rate Fund and Apollo Tactical Income Fund, enhancing capital deployment capabilities.
Strong Origination Volumes: MidCap Financial's origination volumes were strong, with $21.3 billion in commitments for 2024, indicating robust deal flow.
Stable Credit Quality: Maintained a stable credit quality in the portfolio, with no signs of general credit weakness and positive revenue and EBITDA growth among portfolio companies.
Improved Interest Coverage Ratio: Weighted average interest coverage ratio improved to 2.1 times, indicating better financial health of portfolio companies.
CLO Market Success: CLO market success with the pricing of a $529 million CLO, adding low-cost secured debt and reflecting strong investor interest.
Positive M&A Activity Outlook: Expectations for increased sponsor-related M&A activity, indicating a positive outlook for the direct lending market.
Negative
NAV Decline Analysis: NAV per share decreased by $0.12, or approximately 0.8%, indicating a slight decline in the company's net asset value.
Yield Decrease Impact: The weighted average yield at cost on the directly originated portfolio decreased to 11% from 11.6%, primarily due to lower base rates, which may affect income generation.
Net Investment Income Analysis: Net investment income per share was $0.40 for the December quarter, which is a modest return and reflects the challenges in the current market environment.
Net Loss Analysis: The company reported a net loss of approximately $13 million or $0.14 per share, with 60% of that loss stemming from positions that were on non-accrual at the beginning of the quarter.
Leverage Capacity Underutilization: The net leverage ratio was 1.16 times, below the target of around 1.4 times, indicating underutilization of leverage capacity.
Management Fees Increase: The increase in management fees to $6.2 million from $4.4 million due to the increase in net assets from the merger, which could impact profitability.
Revenue Generation Challenges: The decline in fee income offset the increase in interest income, suggesting challenges in generating revenue from non-interest sources.
