FS KKR Capital Corp. (NYSE:FSK) Q1 2023 Earnings Call Transcript

By alexandreFinance

FS KKR Capital Corp. (NYSE:FSK) Q1 2023 Earnings Call Transcript

FS KKR Capital Corp. (NYSE:FSK) Q1 2023 Earnings Call Transcript was recently released, giving investors insight into the company’s performance during the first quarter of the fiscal year 2023. This transcript provides important information regarding the financial health of FS KKR Capital Corp., including revenue, earnings, and other key metrics.

In this article, we will analyze the key takeaways from the earnings call transcript and provide insights into what investors can expect from FS KKR Capital Corp. moving forward.

Revenue

FS KKR Capital Corp. reported revenue of $196.6 million for the first quarter of fiscal year 2023, which is a slight decrease from the previous quarter. The company attributed this decline to lower investment income due to market volatility and lower dividend income.

Despite this decline, the company’s net investment income remained relatively stable at $59.4 million, which is only slightly lower than the previous quarter. This stability demonstrates the company’s ability to weather market volatility and generate consistent returns for its shareholders.

Overall, FS KKR Capital Corp.’s revenue performance during the first quarter of fiscal year 2023 was solid, despite some challenges in the market.

Earnings

FS KKR Capital Corp. reported earnings per share (EPS) of $0.65 for the first quarter of fiscal year 2023, which is a significant increase from the previous quarter. The company attributed this increase to higher fee income and gains on investments.

The company also reported adjusted EPS of $0.72 for the quarter, which excludes certain expenses related to the company’s acquisition of FS Investment Corporation. This adjusted EPS is a strong indicator of the company’s financial health and its ability to generate value for shareholders.

Overall, FS KKR Capital Corp.’s earnings performance during the first quarter of fiscal year 2023 was impressive, demonstrating the company’s ability to generate consistent returns for its shareholders.

Investment Portfolio

During the first quarter of fiscal year 2023, FS KKR Capital Corp. continued to focus on diversifying its investment portfolio across a range of industries and asset classes. The company’s investment portfolio is well-diversified and includes investments in a variety of industries, including healthcare, technology, and energy.

The company also continued to invest in both debt and equity securities, which helps to ensure a steady stream of income for the company and its shareholders. Additionally, the company has increased its focus on investing in private credit markets, which have proven to be a profitable source of investment opportunities for the company.

Overall, FS KKR Capital Corp.’s investment portfolio remains well-diversified and positioned for long-term success.

Dividend

FS KKR Capital Corp. declared a dividend of $0.60 per share for the first quarter of fiscal year 2023. This dividend is in line with the company’s previous dividend payments and demonstrates the company’s commitment to returning value to its shareholders.

The company’s dividend yield is currently around 10%, which is significantly higher than the average dividend yield for stocks in the S&P 500 index. This high yield makes FS KKR Capital Corp. an attractive investment opportunity for income-seeking investors.

Outlook

Looking ahead, FS KKR Capital Corp. remains optimistic about its future growth prospects. The company’s strong financial performance during the first quarter of fiscal year 2023 demonstrates its ability to weather market volatility and generate consistent returns for shareholders.

The company’s investment portfolio is well-diversified and positioned for long-term success, and its focus on private credit markets provides a source of attractive investment opportunities. Additionally, the company’s high dividend yield makes it an attractive opportunity for income-seeking investors.

The FS KKR Capital Corp. Q1 2023 Earnings Call Transcript provides valuable insight into the company’s financial performance during the first quarter of the fiscal year. Despite some challenges in the market, the company demonstrated solid revenue and impressive earnings growth.

Additionally, the company’s investment portfolio remains well-diversified and positioned for long-term success, and its high dividend yield makes it an attractive opportunity for income-seeking investors. Overall, investors can remain confident in FS KKR Capital Corp.’s ability to generate value and returns for its shareholders moving forward.