NMFC - New Mountain Finance Q4 earnings top consensus on rising rates tailwind

New Mountain Finance ( NASDAQ: NMFC ) Q4 earnings surpassed Wall Street expectations, "as the rate environment continues to provide an earnings tailwind," CEO John R. Kline said Monday. NMFC advanced 2.2% in after-hours trading.

Adjusted net investment income per weighted average share of $0.35 for the three months ended Dec. 31, 2022, topped the $0.34 consensus estimate and rose from $0.32 in the previous quarter.

Total investment income of $73.9M, falling short of the $82.64M consensus, increased from $67.8M a year before.

"We are confident that our consistent operating performance, enhanced strength from our differentiated underwriting model and a rising interest rate environment will result in net investment income per share exceeding our quarterly dividend for the foreseeable future," Kline added.

Net asset value of $13.02 per share versus 13.49 in Q4 2021.

Total net expenses were $48.9M compared with $38.2M in the year-earlier period.

The business development company said CFO and treasurer Shiraz Y. Kajee is resigning effective April 1. Until then, NMFC has engaged an executive search firm to find its next finance chief and has appointed Chief Operating Officer Laura C. Holson as the interim Chief Financial Officer and Treasurer.

In addition, its board declared a Q1 distribution of $0.32 per share, which will be payable on March 31 to holders of record as of March 17.

Conference call on Feb. 28 at 10:00 a.m. ET.

Towards the end of 2022, New Mountain Finance extended its stock repurchase program.

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