Examining the Future: Golub Capital BDC's Earnings Outlook

Golub Capital BDC GBDC is set to give its latest quarterly earnings report on Tuesday, 2024-11-19. Here's what investors need to know before the announcement.

Analysts estimate that Golub Capital BDC will report an earnings per share (EPS) of $0.44.

The announcement from Golub Capital BDC is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Performance in Previous Earnings

In the previous earnings release, the company missed EPS by $0.01, leading to a 0.69% increase in the share price the following trading session.

Here's a look at Golub Capital BDC's past performance and the resulting price change:

Stock Performance

Shares of Golub Capital BDC were trading at $15.4 as of November 15. Over the last 52-week period, shares are up 1.32%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on Golub Capital BDC

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Golub Capital BDC.

The consensus rating for Golub Capital BDC is Neutral, based on 1 analyst ratings. With an average one-year price target of $15.5, there's a potential 0.65% upside.

Comparing Ratings with Competitors

The following analysis focuses on the analyst ratings and average 1-year price targets of StepStone Group, Federated Hermes and Artisan Partners Asset, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for StepStone Group, with an average 1-year price target of $61.33, suggesting a potential 298.25% upside.
• The prevailing sentiment among analysts is an Neutral trajectory for Federated Hermes, with an average 1-year price target of $40.38, implying a potential 162.21% upside.
• Analysts currently favor an Neutral trajectory for Artisan Partners Asset, with an average 1-year price target of $42.17, suggesting a potential 173.83% upside.

Snapshot: Peer Analysis

The peer analysis summary provides a snapshot of key metrics for StepStone Group, Federated Hermes and Artisan Partners Asset, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Golub Capital BDC ranks in the middle among peers for revenue growth. It is at the bottom for gross profit and return on equity.

Discovering Golub Capital BDC: A Closer Look

Golub Capital BDC Inc is an externally managed, closed-end, non-diversified management investment company. Its investment objective is to generate current income and capital appreciation by investing in senior secured and one-stop loans in United States middle-market companies. It also invests in the second lien and subordinated loans, warrants, and minority equity securities in United States middle-market companies. The company generally invests in securities that have been rated below investment grade by independent rating agencies or that would be rated below investment grade if they were rated.

Breaking Down Golub Capital BDC's Financial Performance

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Decline in Revenue: Over the 3 months period, Golub Capital BDC faced challenges, resulting in a decline of approximately -98.76% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: Golub Capital BDC's net margin excels beyond industry benchmarks, reaching 976.98%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Golub Capital BDC's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.28%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.13%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Golub Capital BDC's debt-to-equity ratio stands notably higher than the industry average, reaching 1.06. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Golub Capital BDC visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.