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Although the revenue and EPS for PennantPark (PNNT) give a sense of how its business performed in the quarter ended March 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
PennantPark (PNNT) came out with quarterly earnings of $0.22 per share, missing the Zacks Consensus Estimate of $0.23 per share. This compares to earnings of $0.26 per share a year ago.
MIAMI, April 03, 2024 (GLOBE NEWSWIRE) -- PennantPark Investment Corporation (the "Company") (NYSE: PNNT) announced that it will report results for the second fiscal quarter ended March 31, 2024 on Wednesday, May 8, 2024 after the close of the financial markets.
PNNT provides investors with a high dividend yield of 12% and monthly distributions. However, I believe that income is likely to be affected by future rate cuts. The debt investment portfolio mostly consists of first lien senior secured loans. They operate within the middle market of companies earning between $10M - $50M. The price currently trades at a slight discount to NAV of 10%. However, the average discount to NAV over the last 3 year period is closer to -26%.
The latest trading day saw PennantPark (PNNT) settling at $6.67, representing a -0.3% change from its previous close.
PNNT's Q1, 2024 earnings report exceeded expectations on core NII, but broke the momentum in NII growth. On the surface, the key performance metrics (e.g., non-accruals, net investment volumes) remained sound. Yet, if we assess the situation deeper, we will notice higher risk concentration and decreased margin of safety from the already low levels before Q1, 2024 results.
In the most recent trading session, PennantPark (PNNT) closed at $6.71, indicating a -1.47% shift from the previous trading day.
Credit quality remained strong, although the company thought if base rates remain high it could see some pressure.
The Fed is not expected to lower interest rates until later in 2024, benefiting the BDC industry. PennantPark Investment Corp. is a BDC based in Miami that specializes in direct and mezzanine investments in middle market companies. PNNT's portfolio consists of a mix of debt and equity investments, with a focus on business services and healthcare/education/childcare industries.
PennantPark Investment Corporation (PNNT) Q1 2024 Earnings Call Transcript