Fidus Investment Q3 total investment income falls on lower dividend, fee income

Overview

• Fidus Q3 total investment income falls 2.9% yr/yr to $37.3 mln

• Net investment income decreases 18.9% yr/yr to $17.4 mln

• The lower middle-market BDC declares Q4 dividends totaling $0.50 per share

Outlook

• Company has a strong pipeline of new investments and add-ons in existing portfolio companies

• Fidus intends to maintain a portfolio structured for attractive risk-adjusted returns

Result Drivers

• INVESTMENT INCOME DECLINE - Total investment income decreased due to lower dividend and fee income, despite increased payment-in-kind interest income

• EXPENSES INCREASE - Higher interest and financing expenses contributed to increased total expenses

• PORTFOLIO EXPANSION - Continued investment in new portfolio companies supports growth strategy

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the closed end funds peer group is "hold."

• Wall Street's median 12-month price target for Fidus Investment Corp is $22.00, about 5.4% above its November 5 closing price of $20.82

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX8qTB6h

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)