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 -0.24% change in stock price 10 days leading up to the earnings, and a +0.71% change 10 days following the report. On the earnings day itself, the stock moves by -0.02%. 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
83.83M
1.77%
-7.81%
Gross Margin
--
--
--
Operating Margin
28.64%
-15.96%
-25.63%
Net Margin
28.50%
-18.20%
-25.49%
EPS
0.22
-18.52%
-29.03%
No Data Available
NMFC Earnings Analysis
NEW MOUNTAIN FINANCE CORPORATION Corporation (NMFC.O) Earnings Conference Call
Positive
Earnings Coverage Strength: 1. Consistent Earnings Performance: Adjusted net investment income for Q3 2024 was $0.34 per share, exceeding the regular dividend of $0.32 per share, demonstrating strong earnings coverage.
Credit Quality Improvement: 2. Stable Credit Quality: The internal risk ratings of the portfolio improved, with 97.3% rated green, the highest level since the rating system's inception in 2020, indicating strong credit performance.
Shareholder Return Performance: 3. Strong Shareholder Returns: Since its IPO in 2011, NMFC has returned over $1.3 billion to shareholders through dividends, achieving an annualized return of approximately 10%.
Investment Activity Overview: 4. Robust Investment Activity: NMFC originated $146 million in assets during Q3 2024, maintaining a fully invested position within its target leverage range.
Enhanced Liquidity Position: 5. Improved Liquidity Position: The company successfully negotiated a repricing of its credit facility, reducing spreads and more than doubling the size of its corporate revolver, enhancing its liquidity profile.
Negative
Net Asset Value Decline: 1. Decline in Net Asset Value: The net asset value per share decreased by $0.12, or 0.9%, to $12.62, indicating a slight deterioration in the company's asset valuation.
Rising Total Expenses: 2. Increased Total Expenses: Total net expenses rose by 9% year-over-year to approximately $59 million, primarily due to higher financing costs, which could pressure future profitability.
Decreased Portfolio Yield: 3. Lower Average Yield: The average yield of NMFC’s portfolio decreased to 10.5% for Q3, attributed to a downward shift in the forward SOFR curve, potentially impacting income generation.
Supplemental Dividend Challenges: 4. Limited Supplemental Dividends: The company does not expect to pay supplemental dividends in the upcoming quarters, indicating potential challenges in generating excess income beyond the regular dividend.
PIK Asset Management: 5. High PIK Exposure: The company acknowledged a higher-than-desired level of Payment-in-Kind (PIK) assets, which they aim to reduce, reflecting concerns over cash flow stability.
NMFC FAQs
How does NMFC typically perform around its earnings report dates?
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NMFC Earning Call Sentiment
New Mountain Finance Corporation (NMFC) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
NMFC.O
-0.33%Positive
The earnings call summary indicates mixed results: a slight decline in NAV, increased expenses, and concerns about PIK exposure. However, strong dividend coverage, consistent shareholder returns, and a focus on defensive sectors are positives. The Q&A section reveals management's cautious approach to market changes and refinancing, with some uncertainty about PIK levels and SBIC license updates. The market cap suggests a moderate reaction, leading to a neutral sentiment prediction.
