Core Viewpoint - PennantPark (PFLT) has received an upgrade to Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Recent Performance and Outlook - PennantPark is projected to earn $1.30 per share for the fiscal year ending September 2025, reflecting a year-over-year increase of 2.4% [8]. - Over the past three months, the Zacks Consensus Estimate for PennantPark has risen by 2.8%, indicating positive sentiment among analysts [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of PennantPark to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - For the quarter ended December 31st, GAAP net investment income was $0.37 per share and core net investment income was $0.33 per share [7][34] - The portfolio grew to $2.2 billion, an increase of 11% from the prior quarter [8] - GAAP and adjusted NAV increased by 0.3% to $11.34 per share from $11.31 per share [22][35] Business Line Data and Key Metrics Changes - The weighted average yield on debt investments was 10.6%, with approximately 100% of the debt portfolio being floating rate [36] - The portfolio's weighted average leverage ratio was 4.3 times, and interest coverage was 2.2 times [23][37] - Non-accruals represented only 0.4% of the portfolio at cost and 0.1% at market value [23][37] Market Data and Key Metrics Changes - The market yield of first lien term loans stabilized in the SOFR plus 500 to 550 range [12][94] - The company continues to see an attractive vintage in the core middle market, with lower leverage, higher spreads, and tighter covenants compared to the upper middle market [12][28] Company Strategy and Development Direction - The company focuses on providing senior secured floating rate capital to middle market private equity sponsors, particularly in sectors like healthcare and government services [25][78] - The strategy emphasizes capital preservation and generating stable dividends through investments in companies with high free cash flow conversion [32][68] - The company aims to grow its joint venture portfolio to approximately $1.5 billion, enhancing earnings momentum [15][53] Management's Comments on Operating Environment and Future Outlook - Management believes 2025 will be an active year for M&A, particularly in the core middle market, with expectations for continued deployment of capital [49][51] - The company is well-positioned to weather economic challenges due to its focus on companies that provide cost savings and high-quality services [78][80] - Management expressed confidence in the stability of spreads and the overall credit quality of the portfolio [96][117] Other Important Information - The company completed a successful exit from its investment in Marketplace Events, generating a 2.6 times multiple on invested capital [10] - The debt to equity ratio was 1.4 times, with a target ratio of 1.5 times, indicating a stable capital structure [14][36] Q&A Session Summary Question: What controls the shadow ratings inside the securitization? - Management stated that each loan gets an annual update, and any significant events are shared with S&P for re-rating [42] Question: How much of the debt stack would the company be comfortable having in securitizations? - Management expressed a preference for a diversified funding structure, including both revolvers and securitizations [44][45] Question: Are there signs of increased appetite for equity monetization? - Management noted that 2025 is expected to be active for both M&A and exits, with a focus on companies seeking liquidity solutions [49][51] Question: What is the outlook for originations in the coming quarters? - Management indicated that while Q1 is typically slower, they expect overall activity to ramp up throughout 2025 [58][60] Question: How does the company view its position relative to economic dynamics like tariffs? - Management reported limited exposure to tariffs and emphasized a strong position in healthcare and government contracting sectors [75][78] Question: What is the visibility on portfolio shifts from PFLT to PSSL? - Management explained that asset transfers depend on deal flow and financing needs, with a focus on optimizing the capital structure [85][88] Question: What is driving the markdowns in equity investments? - Management clarified that markdowns occur in the equity co-investments retained in PFLT, while the JV does not take equity co-invest [98] Question: What proportion of unfunded commitments are at the company's discretion? - Management detailed that revolver commitments are largely at the borrower's discretion, while delayed draws are more under the company's control [100][102] Question: Will the exit from Marketplace Events trigger a special dividend? - Management indicated that while it increases spillover amounts, they typically do not pay special dividends [113] Question: How is the credit quality of the portfolio? - Management reported stable non-accruals and normal activity in credit amendments, emphasizing the benefits of diversification [116][117]

Core Insights - PennantPark (PFLT) reported a revenue of $67.01 million for the quarter ended December 2024, marking a year-over-year increase of 76.5% [1] - The earnings per share (EPS) for the same period was $0.33, consistent with the EPS from a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $58.93 million by 13.70%, and the EPS also surpassed the consensus estimate of $0.31 by 6.45% [1] Financial Performance Metrics - Other income from non-controlled, non-affiliated investments was $1.48 million, exceeding the two-analyst average estimate of $1.16 million, but reflecting a year-over-year decline of 16.1% [4] - Interest income from non-controlled, non-affiliated investments reached $47.46 million, surpassing the two-analyst average estimate of $43.30 million, with a significant year-over-year increase of 99.7% [4] - Dividend income from non-controlled, non-affiliated investments was $0.58 million, slightly above the estimated $0.50 million, representing a year-over-year increase of 13.6% [4] Stock Performance - Over the past month, shares of PennantPark have returned +1.2%, compared to a +2.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

PennantPark (PFLT) came out with quarterly earnings of $0.33 per share, beating the Zacks Consensus Estimate of $0.31 per share. This compares to earnings of $0.33 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.45%. A quarter ago, it was expected that this investment company would post earnings of $0.32 per share when it actually produced earnings of $0.32, delivering no surprise.Over the last four quarters, the company has ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (786) 297-9500 (Registrant's Telephone Number, Including Area Code) None (Former name, former address and former fiscal year, if changed since last report) Securities registered pursuant ...

EXHIBIT 99.1 PennantPark Floating Rate Capital Ltd. Announces Financial Results for the First Quarter Ended December 31, 2024 MIAMI, Feb. 10, 2025 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) announced today its financial results for the first quarter ended December 31, 2024. HIGHLIGHTS Quarter ended December 31, 2024 (Unaudited) ($ in millions, except per share amounts) | Assets and Liabilities: | | | | --- | --- | --- | | Investment portfolio | $ | 2,193.9 | | Net assets | $ | 9 ...

MIAMI, Feb. 10, 2025 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) announced today its financial results for the first quarter ended December 31, 2024. HIGHLIGHTSQuarter ended December 31, 2024 (Unaudited)($ in millions, except per share amounts) Assets and Liabilities: Investment portfolio (1) $2,193.9 Net assets $962.7 GAAP net asset value per share $11.34 Quarterly increase in GAAP net asset value per share 0.3%Adjusted net asset value per share (2) $11.34 Quarterly increase ...

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MIAMI, Jan. 08, 2025 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (the "Company") (NYSE: PFLT) announced that it will report results for the first fiscal quarter ended December 31, 2024 on Monday, February 10, 2025 after the close of the financial markets. The Company will also host a conference call at 9:00 a.m. (Eastern Time) on Tuesday, February 11, 2025 to discuss its financial results. All interested parties are welcome to participate. You can access the conference call by dialing toll-fr ...

MIAMI, Dec. 26, 2024 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (“PFLT”) (NYSE: PFLT) announced that it has upsized its credit facility, led by Truist Bank (the “Credit Facility”) to $736 million from $636 million. Pricing on this facility remained unchanged at SOFR plus 225 basis points. “We are appreciative of the support from all of our existing lending partners. Their support highlights the confidence they have in our excellent long-term track record,” said Arthur Penn, Chairman and Chie ...