China’s Xi speaks with Trump by phone, discusses Taiwan and bilateral ties
MIAMI - Pennant Investment Corporation (NYSE:PNNT) shares dropped 2.9% in after-hours trading Monday after the business development company reported fourth quarter earnings that fell short of analyst expectations.
The company posted adjusted earnings per share of $0.15 for the quarter ended September 30, 2025, missing the analyst consensus of $0.17. Net investment income for the quarter totaled $9.8 million, down from $14.4 million in the same period last year. Total investment income declined to $28.0 million from $36.5 million in the prior-year quarter.
"The credit quality of our investment portfolio continues to perform well and we remain confident in the continued resilience of the portfolio, supported by our disciplined focus on the core middle market," said Art Penn, Chief Executive Officer. "We remain highly focused on creating realizations of our equity holdings and utilizing that capital to support our NII."
For the full fiscal year 2025, Pennant reported net investment income of $46.1 million, or $0.71 per share, compared to $60.1 million, or $0.92 per share, in fiscal 2024. The company’s investment portfolio totaled $1.29 billion as of September 30, 2025, consisting primarily of first lien secured debt (45%), U.S. Government Securities (10%), and preferred and common equity (28%).
The company maintained its quarterly dividend at $0.24 per share, which currently exceeds its quarterly earnings. Management noted they will continue to utilize spillover income, estimated at $0.73 per share, to supplement shortfalls in dividend coverage.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.