Pearl Diver Credit (NYSE:PDCC) Announces Earnings Results, Misses Estimates By $0.11 EPS

Pearl Diver Credit (NYSE:PDCC) released its quarterly earnings results on Thursday. The company reported $0.28 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.11), Zacks reports. The firm had revenue of $4.16 million for the quarter, compared to analyst estimates of $4.91 million.

Here are the key takeaways from Pearl Diver Credit’s conference call:

• Positive Sentiment: Net asset value per share recovered 6.4% to $11.15 in the second quarter, supported by $6.7 million in net unrealized gains and an $8.5 million increase in net assets from operations.
• Positive Sentiment: The company completed five CLO resets and refinancings covering approximately 12% of its portfolio, reducing weighted-average debt costs by 33 basis points and AAA spreads by 27 basis points.
• Positive Sentiment: Credit performance remained resilient, with the portfolio’s last-12-month default rate at 1.08%, broadly in line with the CLO market and below the 2.29% leveraged-loan market rate. About 70% of net asset value is in CLOs with reinvestment periods extending to 2029 or later.
• Negative Sentiment: Investment income declined to $4.2 million, or $0.60 per share, from $4.8 million, or $0.70 per share, in the prior quarter; recurring CLO cash flows also fell to $1.27 per share from $1.53. Management maintained a reduced monthly dividend of $0.13 per share for September through November.
• Neutral Sentiment: Management remains constructive on CLO opportunities but is not assuming the market recovery marks a durable cycle turn, retaining capacity to increase leverage selectively from its 32.9% of total-assets level if conditions and investment opportunities warrant.

Pearl Diver Credit Trading Up 0.3%

Shares of PDCC stock opened at $8.83 on Friday. Pearl Diver Credit has a 1-year low of $8.45 and a 1-year high of $17.74. The stock’s fifty day simple moving average is $9.33 and its 200-day simple moving average is $10.32.

Pearl Diver Credit Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Monday, November 30th. Stockholders of record on Monday, November 16th will be issued a dividend of $0.13 per share. The ex-dividend date is Monday, November 16th. This represents a c) dividend on an annualized basis and a dividend yield of 17.7%.

About Pearl Diver Credit

Pearl Diver Credit Company Inc is a newly organized, externally managed, non-diversified, closed-end management investment company. Its primary investment objective is to maximize its portfolio’s total return, with a secondary objective of generating high current income. Pearl Diver Credit Company Inc is based in NEW YORK.