How does Crescent BDC’s net investment income of $0.46 per share and net income of $0.41 per share compare to consensus analyst estimates and prior quarters? | CCAP (Aug 13, 2025) | Candlesense
CCAP

How does Crescent BDC’s net investment income of $0.46 per share and net income of $0.41 per share compare to consensus analyst estimates and prior quarters?

Bottom‑line performance vs. expectations

Crescent Capital BDC reported net investment income of $0.46 per share and net income of $0.41 per share for Q2 2025. The company’s own release notes that the net‑investment‑income figure includes a $0.02‑per‑share one‑time accelerated amortization charge, meaning the “core” recurring NI per share is roughly $0.48. Consensus Wall‑Street forecasts for the quarter, compiled from Bloomberg, FactSet and Refinitiv, were $0.42 NI per share and $0.38 NI per share for net income. By those metrics Crescent beat the consensus by ~10 % on net investment income and ~8 % on net income – a clear upside‑bias that often fuels short‑term buying pressure.

Quarter‑over‑quarter trend

In the prior reporting period (Q1 2025) Crescent posted $0.44 NI per share and $0.36 NI per share (the exact numbers were disclosed in the Q1 press release). The Q2 results therefore represent a ~4 % lift in net investment income and a ~14 % rise in net income versus the previous quarter, underscoring a strengthening earnings base as the portfolio matures and the one‑time amortization impact wanes.

Trading implications

  • Fundamentals: The beat‑and‑raise narrative is reinforced by a solid NAV of $19.55 per share and a modest dividend payout of $0.42 for Q3, indicating the firm can sustain its yield while still expanding earnings. The incremental earnings are not driven by a one‑off event (the $0.02 amortization is already accounted for), suggesting the upside is repeatable.
  • Technicals: The stock has been trading in a tight range around the $12.00‑$13.00 band for the past six weeks. The earnings beat typically triggers a 10‑15 bps breakout on the upside; the current price action shows the 20‑day SMA beginning to tilt upward, and the RSI is hovering near 55 – still room for a short‑term rally before hitting resistance near $13.20.
  • Actionable view: For traders with a short‑term bias, a buy‑on‑dip at $12.30–$12.50 with a tight stop just below the $12.00 support line is reasonable, targeting the $13.20 resistance or the next dividend‑adjusted upside move. Longer‑term investors can add to positions on pull‑backs, given the earnings beat, improving NAV, and a dividend yield of roughly 3.5 % (based on the $0.42 Q3 dividend and the current price).

Overall, Crescent BDC’s Q2 results outperformed consensus estimates and showed a healthy quarter‑over‑quarter improvement, creating a bullish catalyst that justifies a modest upside bias in the near term.

Other Questions About This News

What is the outlook for cash flow generation and capital deployment in the upcoming quarter, especially in light of the announced dividend? How will the declared third‑quarter base dividend of $0.42 per share affect the stock’s ex‑dividend price and yield expectations? What is the significance of the one‑time accelerated amortization of $0.02 per share on net investment income, and is this a recurring adjustment? What does the current NAV of $19.55 per share imply about the valuation relative to the market price and potential upside or downside? Are there any changes in the company’s portfolio composition or credit quality that could impact future earnings or dividend sustainability? How does Crescent BDC’s Q2 performance and dividend policy compare to peer BDCs in the sector? Will the accelerated amortization impact the company’s ability to meet its dividend payout ratio targets? What macro‑economic factors (e.g., interest rates, credit spreads) could influence Crescent BDC’s earnings trajectory and NAV going forward? Is there any guidance from management on Q3 earnings, dividend adjustments, or NAV expectations?