Post-Earnings Coverage – Prospect Capital

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Sep 03, 2014, 09:20 ET from Investor-Edge

LONDON, September 3, 2014 /PRNewswire/ -- has issued free post-earnings coverage on Prospect Capital Corp. (NASDAQ:  PSEC). The company featured in the headlines on Monday, August 25, 2014 after reporting its fourth quarter and full-year results for the period ended June 30, 2014. For FY14, Prospect Capital Corp.'s net increase in net assets resulting from operations rose 44% Y-o-Y and its net investment income increased 10% Y-o-Y. Our free coverage report can be accessed at:

Earnings Overview 

For FY14, Prospect Capital Corp. reported net investment income (NII) of $357.22 million, or $1.19 per weighted average share, compared with NII of $324.92 million, or $1.57 per weighted share, in FY13. For fiscal year ended June 30, 2014, the company's net increase in net assets resulting from operations (NI) was $319.02 million, or $1.06 per weighted average share, as compared to NI of $220.86 million, or $1.07 per weighted average share, in the previous year. However, on a per share basis, both NII and NI decreased year on year primarily due to non-recurring income from Energy Solutions Holdings Inc. (ESHI) in FY13. Analysts from Bloomberg were anticipating NI of $356.86 million, or $1.18 per weighted average share, for FY14. For the quarter, Prospect Capital Corp.'s NII decreased to $84.15 million, or $0.25 per weighted average share, from $98.5 million, or $0.31 per weighted average share, in Q3 FY14. For the reported quarter, the company's NI stood at $71.66 million, or $0.21 per weighted average share, compared with $82.69 million, or $0.26 per weighted average share, in the preceding year quarter. However, analysts from Bloomberg were expecting NI of $105.16 million, or $0.31 per weighted average share, for the reported quarter. The sequential decline in NII and NI was attributed to a decrease in originations from $1.3 billion in Q3 FY14 to $444 million in Q4 FY14, resulting in a decrease in structuring fees from $24.5 million in the prior sequential quarter to $5.2 million in the reported quarter.  The free research on PSEC can be downloaded as in PDF format at:

As of June 30, 2014, Prospect Capital Corp.'s net assets stood at $3.62 billion, compared with net assets of $2.66 billion, on June 30, 2013. However, the company's net asset value per share on June 30, 2014 stood at $10.56 per share, representing a decline of $0.16 per share from June 30, 2013 and $0.12 per share from March 31, 2014.

Prospect Capital Corp. increased its monthly cash distributions to shareholders through December 2014, from $0.1105 per share for August 2014 to $0.1106 per share for December 2014.  During Q4 FY14, the company paid cash dividends of $0.33 per share to its shareholders, while for FY14, the company paid a shareholder dividend of $1.32 per share.

Further, at the end of the fourth quarter of 2014, Prospect Capital's portfolio comprised of 143 long-term investments with a fair value of $6.25 billion, compared with 124 long-term investments with a fair value of $4.17 billion at June 30, 2013. During Q4 FY14, the company completed 12 new and follow-on investments aggregating $444.1 million and realised full repayment for five other investments. For FY ending June 30 2014, Prospect Capital entered the aircraft leasing sector, with an initial investment of $92.6 million in Echelon to finance a diversified airplane asset acquisition. Sign up and read the free analyst's notes on PSEC at:

Stock Performance 

On Tuesday, August 26, 2014, a day after the earnings release reported a sequential decline in NI and NII, the stock was down by 3.83%, to end the session at $10.56. The stock has further depreciated since then, finishing at $10.32 on the last close, Tuesday, September 02, 2014. The stock vacillated between $10.30 and $10.47 during the trading session. A total of 4.51 million shares were traded, which was below its three months average volume of 5.35 million shares. Over the previous three trading sessions and over the last one month, the company's shares have declined 0.15% and 2.60%, respectively. Moreover, the stock has fallen by 8.07% from the beginning of 2014. Prospect Capital Corp.'s shares are trading below their 50-day and 200-day moving averages of $10.69 and $10.81, respectively. Further, the stock traded at a PE ratio of 8.72 and has a Relative Strength Index (RSI) of 34.33. Visit Investor-Edge and access the latest research on PSEC at:

Sneak Peek to Corporate Insider Trading  

On August 27, 2014, Mr. Brian H. Oswald, Chief Financial Officer and Chief Compliance Officer of Prospect Capital Corp., purchased a total of 27,300 shares, worth $283,970 at an average price of $10.40 per share. In addition, on August 27 and 28, 2014, Mr. Eugene S. Stark, a member of Board of Directors at Prospect Capital Corp., bought a total of 4,000 shares of the company for $41,280 at an average price of $10.32 per share. Complimentary in-depth research on PSEC is available at:


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