FS KKR Capital (NYSE:FSK) Posts Quarterly Earnings Results, Beats Expectations By $0.06 EPS

FS KKR Capital (NYSE:FSK) issued its quarterly earnings results on Thursday. The company reported $0.46 earnings per share for the quarter, topping the consensus estimate of $0.40 by $0.06, Zacks reports. The company had revenue of $294.00 million for the quarter, compared to analysts’ expectations of $274.61 million. FS KKR Capital had a positive return on equity of 9.70% and a negative net margin of 28.52%. During the same period in the prior year, the firm earned $0.57 earnings per share.

Here are the key takeaways from FS KKR Capital’s conference call:

• Third-quarter net investment income was $0.46 per share, but included a non-recurring $25 million Belk dividend that added $0.08 per share and a $12 million benefit from KKR’s incentive-fee waiver. Management expects fourth-quarter net investment income at an annualized 8%–9% of NAV, with a $17 million JW Aluminum dividend partly offsetting the absence of Belk’s payment and the usual annual excise tax.
• FSK repurchased 6.2 million shares for about $69 million during the quarter, at an average $11.24 per share, adding $0.16 to NAV per share. Cumulative repurchases reached $90 million of the $300 million program through October 30.
• NAV per share edged down to $18.28 from $18.30, including a $0.19-per-share decline in portfolio value. Non-accruals improved sequentially to 6.4% of portfolio cost and 3.4% of fair value, though two investments totaling $142 million at cost were newly placed on non-accrual.
• Management is prioritizing share repurchases, portfolio rotation and leverage reduction over net deployment, with leverage at 127% and a target range of 1.0–1.25 times. About 25% of the portfolio matures by 2028; executives highlighted software as an area of particular maturity and AI-related risk.

FS KKR Capital Price Performance

FSK traded up $0.04 during trading on Friday, hitting $11.70. 2,626,212 shares of the company traded hands, compared to its average volume of 2,058,401. The company has a market cap of $3.23 billion, a PE ratio of -6.32 and a beta of 0.88. The stock’s 50-day simple moving average is $11.25 and its two-hundred day simple moving average is $11.29. The company has a current ratio of 2.28, a quick ratio of 2.28 and a debt-to-equity ratio of 1.26. FS KKR Capital has a 1 year low of $9.72 and a 1 year high of $16.31.

FS KKR Capital Dividend Announcement

The business also recently disclosed a special dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be given a dividend of $0.20 per share. The ex-dividend date is Tuesday, December 1st. FS KKR Capital’s dividend payout ratio (DPR) is presently -130.37%.

Analysts Set New Price Targets

A number of analysts have recently commented on the stock. Zacks Research upgraded shares of FS KKR Capital from a “strong sell” rating to a “hold” rating in a report on Tuesday, August 11th. JPMorgan Chase & Co. upped their target price on shares of FS KKR Capital from $9.50 to $11.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 19th. Wells Fargo & Company cut shares of FS KKR Capital from a “sector perform” rating to an “underweight” rating and set a $10.00 price target for the company. in a research report on Tuesday, September 29th. Weiss Ratings reissued a “sell (d+)” rating on shares of FS KKR Capital in a research note on Friday, August 28th. Finally, Wall Street Zen raised shares of FS KKR Capital from a “sell” rating to a “hold” rating in a research note on Saturday, August 1st. Six research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, FS KKR Capital presently has an average rating of “Reduce” and an average target price of $11.43.

Key Stories Impacting FS KKR Capital

Here are the key news stories impacting FS KKR Capital this week:

• Positive Sentiment: Net investment income was $0.46 per share, above the $0.40 consensus estimate, while revenue of $294 million topped expectations of $274.6 million. Net investment income also improved from $0.44 in the prior quarter. FS KKR Capital Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company declared a fourth-quarter distribution of $0.44 per share and a special distribution of $0.20 per share, supporting its income appeal. FS KKR Capital Corp. Announces Third Quarter 2026 Results
• Neutral Sentiment: Portfolio losses narrowed from the previous quarter: total realized and unrealized losses were $0.19 per share, versus $0.56. FS KKR Capital Corp. Announces Third Quarter 2026 Results
• Negative Sentiment: Income remained below the year-ago level of $0.57 per share. Net asset value slipped to $18.28 from $18.30, and sales and repayments of $442 million exceeded new investment purchases of $335 million. Net debt-to-equity also rose to 125% from 122%, highlighting portfolio and leverage concerns. FS KKR Capital Q3 Net Investment Income Falls

About FS KKR Capital

FS KKR Capital Corp. (NYSE: FSK) is a business development company (BDC) that provides financing to private middle-market companies. The company primarily invests in senior secured loans and other debt instruments, while also making select equity investments. Its portfolio companies generally operate across a range of industries and are typically based in the United States.

FSK is externally managed by FS/KKR Advisor, LLC, a joint venture between FS Investments and KKR. The adviser combines FS Investments’ experience in serving individual and institutional investors with KKR’s global investment platform and private credit capabilities.

The company traces its history to FS Investment Corporation and Corporate Capital Trust, which combined in 2018 to create FS KKR Capital Corp.