Prospect Capital's Earnings Skyrocket

Net investment income for the quarter ending Dec. 31 rose to $10.7 million, or 46 cents per share, from $4.5 million, or 33 cents per share, during the same period the previous year. Analysts polled by Thomson Financial, on average, forecast earnings of 44 cents per share for the quarter.

Net investment income does not include realized losses on investments or unrealized appreciation.

Prospect Capital generated $8.9 million in interest income from non-controlled and nonaffiliated entities during the fiscal second quarter, more than triple the amount earned during the same period in 2006.

Interest income from controlled entities increased to $5.3 million from $3.4 million, while interest income from affiliated entities declined to $655,000 from $1.1 million.

Shares of Prospect Capital fell 64 cents, or 4.3 percent, to $14.24 in afternoon trading. Shares have traded between $11.19 and $18.87 during the past year.