Barings BDC (BBDC) came out with quarterly earnings of $0.29 per share, missing the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -3.33%. A quarter ago, it was expected that this business development company would post earnings of $0.30 per share when it actually produced earnings of $0.40, delivering a surprise of 33.33%.Over the last four quart ...

Investment Portfolio - As of September 30, 2024, the total value of the investment portfolio was $2,416.7 million, down from $2,488.7 million as of December 31, 2023[358]. - The company had investments in 328 portfolio companies with an aggregate cost of $2,446.9 million as of September 30, 2024, compared to 336 portfolio companies with an aggregate cost of $2,535.6 million as of December 31, 2023[358]. - The total investment portfolio fair value was $2,416,714,000, a decrease from $2,488,715,000 on December 31, 2023[360]. - The total fair value of investments in joint ventures and private equity funds was $104,243,000 as of September 30, 2024, down from $110,066,000 at the end of 2023[360]. - The fair value of investments categorized as Risk Rating 1 increased to $250,611,000 (10.5% of total portfolio) as of September 30, 2024, compared to $207,279,000 (8.5%) at the end of 2023[370]. - The fair value of investments in Risk Rating Category 2 decreased to $1,542,076,000 (65.0%) from $1,787,077,000 (73.0%)[370]. Investment Income - The company generates revenues primarily from interest income, loan origination fees, and dividend income from debt securities[350]. - Total investment income for the three months ended September 30, 2024, was $70.851 million, slightly up from $70.846 million in the same period of 2023[383]. - Net investment income after taxes for the three months ended September 30, 2024, was $30.185 million, compared to $33.309 million for the same period in 2023[383]. - Dividends from portfolio companies for the three months ended September 30, 2024, were $9.8 million, up from $8.5 million in the same period of 2023[384]. - Total recurring fee and other income for the three months ended September 30, 2024, was $2,322,000, compared to $2,258,000 for the same period in 2023, reflecting a 2.83% increase[472]. - Total non-recurring fee and other income for the three months ended September 30, 2024, was $1,967,000, significantly higher than $392,000 for the same period in 2023[472]. - Total fee and other income for the nine months ended September 30, 2024, reached $11,532,000, compared to $10,250,000 for the same period in 2023, indicating a 12.47% increase[472]. Expenses and Losses - Total operating expenses for the three months ended September 30, 2024, were $39.633 million, an increase from $37.125 million in the same period of 2023[385]. - The company experienced a net realized loss of $12.6 million from the restructuring of investments in two portfolio companies during the nine months ended September 30, 2024[361]. - Net realized losses for Q3 2024 totaled $10.9 million, primarily from an $8.5 million loss on the investment portfolio and a $2.9 million loss on forward currency contracts[396]. - During the nine months ended September 30, 2024, net realized losses amounted to $24.3 million, with $17.6 million from the investment portfolio and $7.5 million from forward currency contracts[396]. - The company reported a net loss on its investment portfolio of $62.1 million for the nine months ended September 30, 2023, primarily due to a $43.6 million loss on debt investments[397]. Debt and Borrowings - The company had U.S. dollar borrowings of $131.0 million outstanding under the February 2019 Credit Facility, with a weighted average interest rate of 7.105%[410]. - The fair value of the borrowings outstanding under the February 2019 Credit Facility was $347.8 million as of September 30, 2024[411]. - The company issued $50.0 million in aggregate principal amount of Series A senior unsecured notes due August 2025, with a fixed interest rate of 4.66% per year[412]. - The Series B Notes and Series C Notes under the November 2020 NPA have fixed interest rates of 4.25% and 4.75% per year, respectively[417]. - The company had net repayments under the February 2019 Credit Facility totaling $377.1 million during the nine months ended September 30, 2024[404]. - The February 2019 Credit Facility was increased to $1,065.0 million as of April 1, 2022, with a maturity date extended to February 21, 2026[406]. Share Repurchase and Distributions - The company authorized a share repurchase program allowing for the repurchase of up to $30.0 million of common stock, which terminated on March 1, 2024[440]. - During the nine months ended September 30, 2024, the company did not repurchase any shares under the share repurchase program[440]. - The company authorized a new 12-month share repurchase program allowing for the repurchase of up to $30.0 million of common stock starting March 1, 2024[441]. - The company intends to pay quarterly distributions to stockholders, with a declared distribution of $0.26 per share payable on December 11, 2024[449]. Risk Management - The company is exposed to foreign currency fluctuations, with investments translated into U.S. dollars based on spot rates[495]. - Interest rate risk management systems are in place to monitor and hedge against fluctuations, utilizing instruments like interest rate swaps and options[494]. - The complexity of transitioning away from LIBOR could materially affect the company's financial condition and operations[492]. - A hypothetical increase of 300 basis points in interest rates could result in a net income increase of $36.121 million, while a decrease of 50 basis points could lead to a net income decrease of $6.020 million[496]. Investment Strategy - The company focuses on investing in senior secured private debt investments in well-established middle-market businesses across various industries[348]. - The company employs a strategy that targets investments with relatively low levels of cyclicality and operating risk, enhancing returns through prudent leverage[349]. - The company must distribute at least 90% of its investment company taxable income (ICTI) to maintain its status as a regulated investment company (RIC)[445]. - The company has historically met its minimum distribution requirements and continually monitors compliance with the Code[443].

Exhibit 99.1 BARINGS BDC, INC. REPORTS THIRD QUARTER 2024 RESULTS AND ANNOUNCES QUARTERLY CASH DIVIDEND OF $0.26 PER SHARE CHARLOTTE, N.C., November 6, 2024 - Barings BDC, Inc. (NYSE: BBDC) ("Barings BDC" or the "Company") today reported its financial and operating results for the third quarter of 2024 and announced that the Company's Board of Directors (the "Board") declared a quarterly cash dividend of $0.26 per share. | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |------------------ ...

The past couple of years have been great and rewarding for BDC investors. Higher base rates, increased regulation in the banking sector, and a continued momentum of the private capital expansion have created favorable environment for BDCs to Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the li ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are unde ...

Market Overview - Wall Street has experienced significant volatility in September, with the U.S. stock market bouncing back on expectations of Federal Reserve rate cuts after the largest weekly losses of the year [1] - Economic slowdown concerns continue to impact stock performance, with investors seeking high-yield dividend ETFs and stocks as defensive options [1] Rate Cuts Expectations - The Federal Reserve is anticipated to lower interest rates by 25 basis points at each of the three remaining policy meetings this year, with a current range of 5.25%-5.50% since July 2023 [3] - The CME FedWatch tool indicates a 66% chance of a 25 bps cut and a 34% chance of a 50 bps cut during the Fed's decision on September 18 [3] Economic Slowdown Indicators - The U.S. created 142,000 jobs in August, below the expected 160,000, with prior month job growth also revised lower, signaling a cooling labor market [4] - Job openings dropped to the lowest level since January 2021, and the ISM manufacturing survey showed weaker results, contributing to economic slowdown concerns [4] Volatility Factors - Continued volatility is expected due to geopolitical tensions and the upcoming November elections, with historical trends indicating September is typically a weak month for the stock market [5] ETFs in Focus - **Global X SuperDividend ETF (SDIV)**: Annual yield of 10.8%, with $789.2 million in assets and an average trading volume of 200,000 shares [6][7] - **First Trust NASDAQ Rising Dividend Achievers ETF (RDVY)**: Annual yield of 8.5%, with $1.3 billion in assets and an average trading volume of 714,000 shares [8] - **Global X SuperDividend U.S. ETF (DIV)**: Annual yield of 6.2%, with $639.2 million in assets and an average trading volume of 144,000 shares [9] Stocks in Focus - **Barings BDC (BBDC)**: Annual dividend of 10.70%, market cap of $1 billion, with a Zacks Rank 2 and expected earnings growth of 7.56% [10] - **Delek Logistics Partners L.P. (DKL)**: Annual yield of 10.6%, market cap of $1.9 billion, with expected earnings growth of 5.6% [11] - **British American Tobacco (BTI)**: Annual yield of 7.6%, market cap of $86.7 billion, with expected earnings growth of 0.4% [12]

Core Viewpoint - The article discusses the current state of small-cap stocks with high dividend yields, contrasting them with the S&P 500, particularly highlighting the challenges faced by companies like Xerox and the potential opportunities in other small-cap stocks. Group 1: S&P 500 and Small-Cap Comparison - The S&P 500 index is heavily weighted towards Nvidia, which constitutes 6.3% of the index, and the SPDR S&P 500 ETF (SPY) yields only 1.2% with a P/E ratio of 22 times earnings [1] - In contrast, the S&P SmallCap 600 trades at a more reasonable P/E of 16, with select small caps offering dividend yields between 9.1% and 14.7% [1] Group 2: Xerox (XRX) - Xerox has seen its market capitalization fall below $2 billion, marking its status as a small cap for the first time since 1990, following a nearly 40% year-to-date decline [2] - The company has struggled to pivot from its core printing business, leading to a revised revenue guidance of a 5%-6% decline and an adjusted operating margin of 6.5% [3] - Despite a high dividend yield of 9.1%, the business is considered to be in decline, with earnings expectations lowered significantly [3] Group 3: Dorian LPG (LPG) - Dorian LPG, a liquefied petroleum gas shipping company, currently offers a dividend yield of 10.7%, although this has decreased from 25% due to a 66% increase in share price [4] - The company’s earnings for the fiscal year 2025 are expected to fall by 36% from last year's record profits, but a rebound is anticipated in fiscal 2026 [5] - Shares are trading at 7.7 times expected earnings, which is considered inexpensive for investors [6] Group 4: Goldman Sachs BDC (GSBD) - Goldman Sachs BDC offers a high dividend yield of 12.7%, targeting companies with annual EBITDA between $5 million and $75 million [7] - The company has underperformed the BDC industry for years, with a net asset value decline of about 6% last quarter [8] - Despite trading at a low 6.5 times estimates for net investment income per share, it is considered overvalued at a price to NAV of 1.04x [8] Group 5: Barings BDC (BBDC) - Barings BDC provides a 10.3% dividend yield and trades at an 11% discount to NAV, focusing on senior secured private debt investments [9] - The company has improved its portfolio significantly since rebranding from Triangle Capital in 2018, now managing 329 portfolio companies [9][10] - Barings BDC maintains a high-credit-quality portfolio and covers its dividend comfortably [10] Group 6: Ready Capital (RC) - Ready Capital has a dividend yield of 14.7% and trades at 0.63 times book value, which is lower than its peers [11] - The company focuses on originating and servicing small- and medium-sized balance commercial loans, with a recent merger with Broadmark Realty Capital [12] - Ready Capital is undergoing a restructuring process to improve earnings, which have recently fallen below its dividend expectations [13]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the ...

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks, with a focus on metrics and fundamental analysis to find undervalued companies [1] Group 1: Company Overview - Barings BDC (BBDC) currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [2] - The stock has a P/E ratio of 8.30, slightly below the industry average of 8.40, suggesting it may be undervalued [2] - BBDC's Forward P/E has fluctuated between 7.13 and 8.79 over the past year, with a median of 7.66, indicating stability in earnings expectations [2] Group 2: Financial Metrics - BBDC has a P/B ratio of 0.88, which is favorable compared to the industry average P/B of 0.91, indicating a solid market value relative to its book value [2] - Over the past 52 weeks, BBDC's P/B has ranged from 0.76 to 0.90, with a median of 0.81, further supporting its valuation as attractive [2] - The combination of these metrics suggests that BBDC is likely undervalued at present, especially when considering its strong earnings outlook [3]

BARINGS AUGUST 8, 2024 | --- | --- | --- | |-------|-------|-----------------------| | | | | | | | Barings BDC, Inc. | | | | Second Quarter 2024 | | | | Earnings Presentation | Disclaimers & Cautionary Notice Regarding Forward-Looking Statements Cautionary Notice: Certain statements contained in this presentation are "forward-looking" statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made and which reflect managem ...