New Mountain Finance (NASDAQ:NMFC) Releases Earnings Results, Meets Expectations

Key Points

• New Mountain Finance met earnings expectations, reporting quarterly EPS of $0.26 versus the $0.26 consensus estimate. Revenue was $60.41 million, slightly below analysts’ $61.07 million forecast.
• Shares rose $0.08 to $7.11, while the stock remains near the lower end of its 52-week range of $6.47 to $9.84. The company reported a negative net margin of 16.78% and a 10.94% return on equity.
• Analyst sentiment remains cautious: four analysts rate NMFC a Hold and one rates it Sell, producing a consensus “Reduce” rating and a $7.67 target price.

New Mountain Finance (NASDAQ:NMFC - Get Free Report) announced its quarterly earnings results on Monday. The company reported $0.26 earnings per share for the quarter, meeting analysts' consensus estimates of $0.26, FiscalAI reports. New Mountain Finance had a negative net margin of 16.78% and a positive return on equity of 10.94%. The business had revenue of $60.41 million for the quarter, compared to the consensus estimate of $61.07 million.

New Mountain Finance Price Performance

NASDAQ:NMFC traded up $0.08 during trading hours on Monday, reaching $7.11. 885,200 shares of the company were exchanged, compared to its average volume of 798,676. The company has a market capitalization of $671.54 million, a P/E ratio of -15.13 and a beta of 0.58. The business has a 50 day moving average of $7.06 and a 200 day moving average of $7.67. New Mountain Finance has a 1-year low of $6.47 and a 1-year high of $9.84. The company has a debt-to-equity ratio of 1.30, a current ratio of 3.66 and a quick ratio of 3.66.

Wall Street Analysts Forecast Growth

NMFC has been the subject of several recent research reports. Wells Fargo & Company reduced their price objective on New Mountain Finance from $8.00 to $7.50 and set an "equal weight" rating for the company in a research report on Wednesday, August 5th. Keefe, Bruyette & Woods dropped their target price on New Mountain Finance from $9.00 to $8.00 and set a "market perform" rating on the stock in a research report on Monday, July 20th. Finally, Weiss Ratings cut New Mountain Finance from a "sell (d+)" rating to a "sell (d)" rating in a research note on Thursday, October 8th. Four analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, New Mountain Finance currently has a consensus rating of "Reduce" and a consensus target price of $7.67.

About New Mountain Finance

New Mountain Finance Corporation NASDAQ: NMFC is a business development company that provides financing to middle-market businesses. The company is externally managed by New Mountain Finance Advisers, an affiliate of New Mountain Capital, an investment firm focused on growth-oriented companies in industries such as business services, healthcare, software and technology.

New Mountain Finance primarily invests in debt securities, including first-lien, unitranche, second-lien and unsecured loans.

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