NMFC Earnings Prediction
The chart below shows how NMFC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NMFC sees a -0.18% change in stock price 10 days leading up to the earnings, and a +0.05% change 10 days following the report. On the earnings day itself, the stock moves by -0.22%. This data can give you a slight idea of what to expect for the next quarter's release.
NMFC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
84.36M
5.93%
0.63%
Gross Margin
--
--
--
Operating Margin
32.78%
-5.15%
14.46%
Net Margin
32.89%
-4.75%
15.40%
EPS
0.25
-3.85%
13.64%
No Data Available
NMFC Earnings Analysis
New Mountain Finance Corp Corporation (NMFC.O) Earnings Conference Call
Positive
Adjusted Net Investment Income: Adjusted net investment income for Q4 was $0.32 per share, covering the regular dividend of $0.32 per share paid on December 31st.
Stable Credit Performance: Net asset value per share was $12.55, showing stable credit performance with no new non-accruals during the quarter.
Q1 2025 Dividend Announcement: A $0.32 dividend is announced for Q1 2025, supported by strong recurring earnings and a renewed dividend protection program.
Strategic Investment Returns: The sale of a stake in UniTek Global Services returned $42 million to NMFC, aligning with strategic priorities and demonstrating strong investment returns.
Impressive Fund Performance: New Mountain's private equity funds have never had a bankruptcy or missed an interest payment, managing over $55 billion in assets.
Net Realized Losses and Dividends: NMFC has experienced only 12 basis points of average annualized net realized losses since its IPO, while paying out almost $19 per share in cumulative dividends.
Defensive Growth Strategy: The portfolio is well-positioned in defensive growth industries, minimizing exposure to cyclical and volatile sectors.
Senior-Oriented Asset Strategy: The company has a strong focus on senior-oriented assets, with 75% of the portfolio in senior loans and net lease subsidiaries.
Portfolio Yield Increase: The average yield of NMFC's portfolio increased to 11% in Q4, reflecting attractive risk-adjusted returns despite tighter spreads.
Interest Coverage Improvement: The weighted average interest coverage on the portfolio increased to 1.8 times, indicating strong borrower performance and liquidity support from sponsors.
Portfolio Diversification Strategy: The portfolio consists of 121 companies, with the top 10 single name issuers accounting for only 27% of total fair value, enhancing diversification.
Diversified Leverage Profile: The company has a diversified leverage profile with significant borrowing capacity, allowing for strategic refinancing opportunities in the future.
Negative
Limited Income Growth: Adjusted net investment income for Q4 was $0.32 per share, which only covered the regular dividend of $0.32 per share, indicating limited growth in income.
Net Asset Value Decline: Net asset value per share declined by $0.07 or 0.6%, suggesting a slight deterioration in overall asset value despite stable credit performance.
Investment Income Decline: The company experienced a decrease in total investment income by 2% compared to the prior year, indicating potential challenges in revenue generation.
Rising Net Expenses: Total net expenses increased by 9% year-over-year, primarily due to higher financing costs, which could impact profitability.
Portfolio Repayments and Sales: The portfolio had a significant amount of repayments and sales, totaling $218 million, which may indicate a lack of new investment opportunities or challenges in deal flow.
EBITDA Decline Indicators: The weighted average EBITDA of borrowers decreased slightly, which could suggest weakening financial performance among portfolio companies.
Investment Challenges Ahead: The company noted that HelpSystems, a key investment, faced headwinds from extended sales cycles and increased competition, leading to a decline in its loan trading levels.
Interest Rate Impact Analysis: The interest rate sensitivity analysis indicated potential earnings pressure if base rates decrease, which could affect future income stability.
NMFC FAQs
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NMFC Earning Call Sentiment
New Mountain Finance Corporation (NMFC) Q4 2024 Earnings Call Transcript
NMFC.O
-1.17%Positive
The earnings call summary and Q&A indicate a mixed outlook: strong credit quality and stable dividends are positive, but financial performance shows slight declines in income and NAV. Regulatory and competitive pressures pose risks. The Q&A reveals some uncertainty, particularly around PIK exposure and market spreads. Despite a stable portfolio, lack of growth in income and concerns over economic factors suggest a neutral sentiment for the stock price over the next two weeks.
