Goldman Sachs BDC (NYSE:GSBD) Issues Quarterly Earnings Results

Key Points

• Goldman Sachs BDC missed quarterly expectations: Earnings were $0.32 per share versus the $0.35 consensus, while revenue of $74.99 million fell short of estimates of $80.13 million.
• The company declared a quarterly dividend of $0.32 per share, equivalent to an annualized yield of 14.8%; its payout ratio was 246.15%.
• Analyst sentiment was mostly negative, with a consensus “Reduce” rating and an average price target of $8.75. Shares traded at $8.64.

Goldman Sachs BDC (NYSE:GSBD - Get Free Report) released its quarterly earnings data on Thursday. The financial services provider reported $0.32 earnings per share for the quarter, missing analysts' consensus estimates of $0.35 by ($0.03), Zacks reports. The company had revenue of $74.99 million for the quarter, compared to analysts' expectations of $80.13 million. Goldman Sachs BDC had a net margin of 9.21% and a return on equity of 10.40%.

Goldman Sachs BDC Price Performance

Shares of GSBD stock traded down $0.15 during mid-day trading on Friday, hitting $8.64. 1,079,993 shares of the stock were exchanged, compared to its average volume of 775,325. The firm has a fifty day moving average of $9.23 and a 200 day moving average of $9.25. The company has a quick ratio of 0.69, a current ratio of 0.69 and a debt-to-equity ratio of 1.36. Goldman Sachs BDC has a 52-week low of $8.35 and a 52-week high of $10.38. The company has a market cap of $973.17 million, a PE ratio of 33.25 and a beta of 0.62.

Goldman Sachs BDC Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 27th. Shareholders of record on Thursday, December 31st will be given a $0.32 dividend. The ex-dividend date is Thursday, December 31st. This represents a $1.28 dividend on an annualized basis and a dividend yield of 14.8%. Goldman Sachs BDC's dividend payout ratio is 246.15%.

Wall Street Analyst Weigh In

Several analysts recently commented on GSBD shares. Weiss Ratings lowered Goldman Sachs BDC from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday. Wall Street Zen upgraded Goldman Sachs BDC from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Truist Financial boosted their price target on Goldman Sachs BDC from $9.00 to $10.00 and gave the company a "hold" rating in a report on Monday, August 10th. Finally, Zacks Research upgraded Goldman Sachs BDC from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, September 29th. One analyst has rated the stock with a Strong Buy rating, two have issued a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Reduce" and an average price target of $8.75.

About Goldman Sachs BDC

Goldman Sachs BDC, Inc NYSE: GSBD is a business development company that provides financing to privately owned, middle-market companies. The company seeks to generate income and long-term capital appreciation by investing primarily in debt securities and, to a lesser extent, equity interests.

GSBD's portfolio may include senior secured loans, first-lien and unitranche investments, second-lien loans, subordinated debt, and equity-related investments. Its financing supports companies across a range of industries and is generally used for acquisitions, recapitalizations, growth initiatives, refinancing, and other corporate purposes.

Goldman Sachs BDC is externally managed by an affiliate of Goldman Sachs Asset Management and benefits from the investment platform and resources of the Goldman Sachs organization.

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