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

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

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

NYSE:FSK traded up $0.04 during trading hours on Friday, reaching $11.70. 2,626,212 shares of the company traded hands, compared to its average volume of 2,058,401. The firm’s 50-day moving average is $11.25 and its 200-day moving average is $11.29. The stock has a market cap of $3.23 billion, a P/E ratio of -6.32 and a beta of 0.88. The company has a debt-to-equity ratio of 1.26, a current ratio of 2.28 and a quick ratio of 2.28. FS KKR Capital has a 1-year low of $9.72 and a 1-year high of $16.31.

FS KKR Capital Announces Dividend

The business also recently announced a special dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be paid a $0.20 dividend. The ex-dividend date of this dividend is Tuesday, December 1st. FS KKR Capital’s dividend payout ratio is presently -130.37%.

FS KKR Capital News Summary

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

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the stock. Wells Fargo & Company downgraded shares of FS KKR Capital from a “sector perform” rating to an “underweight” rating and set a $10.00 price objective for the company. in a research note on Tuesday, September 29th. Royal Bank Of Canada reiterated a “sector perform” rating and set a $13.00 price target (up from $11.00) on shares of FS KKR Capital in a research report on Wednesday, August 12th. Capital One Financial set a $12.00 price target on shares of FS KKR Capital in a report on Friday, August 7th. Wall Street Zen upgraded shares of FS KKR Capital from a “sell” rating to a “hold” rating in a report on Saturday, August 1st. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of FS KKR Capital in a report on Friday, August 28th. 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.com, the stock currently has a consensus rating of “Reduce” and a consensus target price of $11.43.

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.