Apollo Investment (AINV) Q4 Earnings Lag Estimates, Costs Down
3 min readApollo Investment Corporation’s AINV fourth-quarter fiscal 2021 (ended Mar 31) net investment income of 39 cents per share lagged the Zacks Consensus Estimate of 41 cents. Also, the bottom line declined 33.9% year over year.
The results were hurt by lower total investment income. However, decline in expenses and decent portfolio activity during the quarter were tailwinds.
Net investment income in the reported quarter was $25.6 million, down 34% from the prior-year quarter.
In fiscal 2021, net investment income was $110 million or $1.69 per share, down from $145.3 million or $2.16 per share in fiscal 2020.
Total Investment Income & Expenses Decline
Quarterly total investment income was $50.8 million, down 29% year over year. The fall was mainly due to lower interest income. The figure missed the Zacks Consensus Estimate of $52.5 million.
In fiscal 2021, total investment income declined 21.7% from the prior year to $216.7 million.
Total expenses, net of management fee offset rebate and expense reimbursements, fell 23.2% to $25.2 million.
Solid Balance Sheet Position
As of Mar 31, 2021, the company’s cash and cash equivalents (including foreign currencies) totaled $54.6 million, up from $43.7 million on Mar 31, 2020.
Further, as of Mar 31, 2021, Apollo Investment had $1.47 billion of debt obligations. This included $350 million of Senior Unsecured Notes and $1.12 billion outstanding under the credit facility.
Apollo Investment’s total assets amounted to $2.54 billion, down from $2.87 billion as of Mar 31, 2020.
Net asset value was $15.88 per share, up from $15.70 as of Mar 31, 2020.
Decent Portfolio Activity
The fair value of Apollo Investment’s total investment portfolio was $2.45 billion as of Mar 31, 2021.
In the reported quarter, the company originated $216.2 million of investments and had $268.8 million of repayments.
Our Take
Continued decent origination volumes are expected to support Apollo Investment’s financials. Also, lower expenses are likely to aid the bottom line to some extent.
Apollo Investment Corporation Price, Consensus and EPS Surprise
Apollo Investment Corporation price-consensus-eps-surprise-chart | Apollo Investment Corporation Quote
Currently, Apollo Investment carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Finance Stocks
Goldman Sachs BDC’s GSBD first-quarter 2021 adjusted net investment income of 48 cents per share came in line with the Zacks Consensus Estimate. Also, the bottom line grew 6.7% from the year-ago figure.
Ares Capital Corporation’s ARCC first-quarter 2021 core earnings of 43 cents per share surpassed the Zacks Consensus Estimate of 42 cents. Moreover, the bottom line reflects a rise of 4.9% from the prior-year quarter’s reported number.
Hercules Capital Inc.’s HTGC first-quarter 2021 net investment income of 30 cents per share beat the Zacks Consensus Estimate by a penny. However, the bottom line declined 18.9% year over year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
