Pennantpark Fltng Rt Up 1.61% To $11.02 After Earnings Beat

Pennantpark Floating Rate Capital Ltd (PFLT) reported better than expected earnings this afternoon for Q4 2023.

Pennantpark Fltng Rt's earnings came in at an EPS of $0.32 per share, 3.00% higher than estimates for an EPS of $0.31 per share. The firm's earnings are up 7% since reporting $0.3 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Analyst projections for Pennantpark Fltng Rt revenue came in at a consensus of $34.6 million. Fourth-Quarter revenues surpassed estimates for $35.7 million by $1.1 million (3%). The company achieved 24% growth year-over-year compared to the firm's revenue of $28.8 million from the year-ago quarter. The lower earnings growth relative to revenue signals Pennantpark Fltng Rt has not been able to improve its profit margin.

The stock is up 1.61% to $11.02 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

Trading in the five days leading up to the report earned Pennantpark Fltng Rt a Neutral Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 36. Meanwhile, the average Wall Street analyst rated the stock a Buy.

PennantPark Floating Rate Capital Ltd is a closed-end, externally managed, non-diversified investment company. Its investment objectives are to generate current income and capital appreciation by investing in Floating Rate Loans and other investments made to U.S. middle-market companies. The company believes that Floating Rate Loans to U.S. middle-market companies offer attractive risk-reward to investors due to the limited amount of capital available for such companies and the potential for rising interest rates.