Blackrock Tcp Capital (NASDAQ:TCPC) Announces Quarterly Earnings Results

Blackrock Tcp Capital (NASDAQ:TCPC) posted its quarterly earnings data on Thursday. The investment management company reported $0.15 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.03, Zacks reports. Blackrock Tcp Capital had a positive return on equity of 13.85% and a negative net margin of 61.27%. The business had revenue of $28.48 million for the quarter, compared to analysts’ expectations of $27.51 million.

Here are the key takeaways from Blackrock Tcp Capital’s conference call:

• The board’s strategic-alternatives review is ongoing, with no outcome or timeline yet. Management said it is preserving flexibility and will share more when appropriate.
• Liquidity rose to $511 million, including $253 million in cash, while net regulatory leverage fell to 0.16x after the portfolio sale and repayments. Management is holding cash rather than pursuing new investments while the review continues.
• NAV fell $0.97 per share to $5.61; $0.68 of the decline came from the portfolio sale, with Job&Talent markdowns also weighing on results.
• Adjusted net investment income was $0.15 per share, below the $0.17 quarterly dividend. The board declared another $0.17 dividend for Q4 but will continue evaluating it during the strategic review.
• The portfolio has shrunk to $544 million and is more concentrated; non-accruals rose to 14.2% of portfolio cost and 3.4% of fair value. Management attributed much of the percentage increase to repayments and the portfolio sale reducing the portfolio denominator.

Blackrock Tcp Capital Stock Up 0.6%

Shares of NASDAQ TCPC traded up $0.03 on Friday, reaching $4.29. 123,476 shares of the company’s stock traded hands, compared to its average volume of 929,815. The business’s 50 day simple moving average is $4.07 and its two-hundred day simple moving average is $4.00. Blackrock Tcp Capital has a 12 month low of $3.08 and a 12 month high of $6.25. The company has a market cap of $360.36 million, a price-to-earnings ratio of -3.36 and a beta of 0.98. The company has a quick ratio of 33.70, a current ratio of 33.70 and a debt-to-equity ratio of 1.65.

Blackrock Tcp Capital Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Thursday, December 17th will be paid a dividend of $0.17 per share. The ex-dividend date of this dividend is Thursday, December 17th. This represents a $0.68 dividend on an annualized basis and a dividend yield of 15.8%. Blackrock Tcp Capital’s dividend payout ratio (DPR) is currently -53.13%.

Analyst Ratings Changes

Several brokerages have recently issued reports on TCPC. Keefe, Bruyette & Woods raised Blackrock Tcp Capital from an “underperform” rating to a “market perform” rating and increased their target price for the stock from $3.50 to $4.00 in a research report on Friday, August 7th. Wells Fargo & Company raised Blackrock Tcp Capital from an “underweight” rating to an “equal weight” rating and upped their price target for the stock from $3.50 to $4.00 in a research note on Tuesday, September 29th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Blackrock Tcp Capital in a research report on Friday, August 28th. Three equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus price target of $4.00.

Trending Headlines about Blackrock Tcp Capital

Here are the key news stories impacting Blackrock Tcp Capital this week:

• Positive Sentiment: TCPC reported third-quarter EPS of $0.15, beating the $0.12 consensus, while revenue of $28.48 million exceeded estimates of $27.51 million. Net investment income was $0.16 per share. Zacks earnings report
• Neutral Sentiment: The company declared a quarterly dividend of $0.17 per share, payable December 31. The cited annualized yield is about 16%; while the payout may attract income investors, a high yield can also reflect the stock’s depressed valuation. Dividend and strategic review report
• Neutral Sentiment: Reports cited record repayments, $253 million in cash and progress on a strategic review, but did not describe a completed review or its outcome. These factors may support liquidity while investors wait for further details. Strategic review and repayments report
• Negative Sentiment: Coverage highlighted a sharp NAV decline following the Pantheon deal. EPS also fell from $0.32 in the year-earlier quarter to $0.15, so the quarterly beat does not erase concerns about portfolio value and weaker year-over-year results. NAV report

Blackrock Tcp Capital Company Profile

BlackRock TCP Capital Corp. (NASDAQ: TCPC) is a business development company that provides financing to middle-market companies. The company primarily invests in privately negotiated senior secured loans, subordinated debt and other debt securities, while also making select equity investments. Its portfolio companies operate across a range of industries.

The company seeks to generate current income and, to a lesser extent, capital appreciation by investing in established businesses that may require financing for acquisitions, recapitalizations, refinancing, growth initiatives and other corporate purposes.