Monroe Capital (NASDAQ:MRCC) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Monroe Capital reported Q4 EPS of $0.11, beating estimates by $0.02, and revenue of $8.16M versus $7.90M, but posted a negative net margin of 9.58% despite a positive return on equity of 8.49%.
• Shares fell about 7% to $4.50 on heavy volume; the stock has a market cap near $97.5M, trades close to its 52‑week low, and shows a negative P/E of -23.68.
• The firm paid a quarterly dividend of $0.18 (annualized $0.72), implying a 16.0% yield, but the dividend payout ratio is an unsustainable -378.95%.

Monroe Capital (NASDAQ:MRCC - Get Free Report) issued its quarterly earnings data on Thursday. The financial services provider reported $0.11 EPS for the quarter, beating analysts' consensus estimates of $0.09 by $0.02, FiscalAI reports. The firm had revenue of $8.16 million for the quarter, compared to analysts' expectations of $7.90 million. Monroe Capital had a negative net margin of 9.58% and a positive return on equity of 8.49%.

Monroe Capital Trading Down 7.0%

Shares of MRCC stock traded down $0.34 during mid-day trading on Thursday, hitting $4.50. 293,618 shares of the company's stock were exchanged, compared to its average volume of 111,129. The stock has a market cap of $97.52 million, a price-to-earnings ratio of -23.68 and a beta of 0.75. The company has a quick ratio of 5.87, a current ratio of 5.87 and a debt-to-equity ratio of 1.22. Monroe Capital has a fifty-two week low of $4.47 and a fifty-two week high of $8.29. The stock has a 50-day simple moving average of $6.30 and a two-hundred day simple moving average of $6.69.

Monroe Capital Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, December 31st. Shareholders of record on Tuesday, December 23rd were paid a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 16.0%. The ex-dividend date of this dividend was Tuesday, December 23rd. Monroe Capital's dividend payout ratio is currently -378.95%.

Institutional Trading of Monroe Capital

A number of hedge funds have recently added to or reduced their stakes in MRCC. Kestra Advisory Services LLC acquired a new position in shares of Monroe Capital during the 4th quarter valued at about $35,000. Advisory Services Network LLC acquired a new position in Monroe Capital during the third quarter worth approximately $37,000. O Shaughnessy Asset Management LLC raised its stake in Monroe Capital by 22.3% during the fourth quarter. O Shaughnessy Asset Management LLC now owns 13,247 shares of the financial services provider's stock worth $84,000 after purchasing an additional 2,416 shares during the period. XTX Topco Ltd acquired a new position in shares of Monroe Capital in the 4th quarter valued at $88,000. Finally, Cresset Asset Management LLC purchased a new stake in shares of Monroe Capital during the 3rd quarter valued at $106,000.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reiterated a "hold (c-)" rating on shares of Monroe Capital in a research report on Thursday, January 22nd. One research analyst has rated the stock with a Hold rating, According to data from MarketBeat, the company presently has a consensus rating of "Hold".

About Monroe Capital

Monroe Capital Corporation NASDAQ: MRCC is a publicly traded business development company that specializes in providing flexible debt financing solutions to middle-market companies across North America. The firm structures and underwrites a range of senior secured loans, unitranche financings, second-lien loans, mezzanine debt and equity co-investments. Monroe Capital's offerings are designed to support corporate growth, acquisitions, recapitalizations and refinancings across diverse industries, including business services, healthcare, manufacturing and specialty finance.

Headquartered in Chicago, Illinois, Monroe Capital was founded in 2004 and has since built a national footprint by maintaining offices in key U.S.

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