Sound Point Meridian Capital (NYSE:SPMC) Announces Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Sound Point Meridian Capital (NYSE:SPMC) announced its quarterly earnings data on Thursday. The company reported $0.28 earnings per share for the quarter, missing the consensus estimate of $0.29 by ($0.01), Zacks reports. The company had revenue of $12.82 million during the quarter, compared to analysts’ expectations of $13.17 million.

Here are the key takeaways from Sound Point Meridian Capital’s conference call:

• Quarterly income did not cover the distribution: NII was $0.28 per share versus $0.60 per share in distributions. The company said spread tightening and higher model loss reserves for AI-impacted software loans weighed on income.
• NAV fell to $9.09 per share from $9.88, and the company’s estimated October NAV was lower still, at $8.41–$8.51. Management attributed the decline to realized losses, distributions exceeding NII, and weak market pricing for CLO equity.
• The company said its senior securities coverage ratio was 217% at quarter-end and declined in October, putting it closer to the 200% threshold it is focused on maintaining. Management cited portfolio trading and repayment of its senior facility as tools to manage the ratio, while noting that share repurchases could increase leverage.
• Management reported that monthly NII had risen from about $0.08 per share to more than $0.09 in the quarter and approximately $0.11 in October. It pointed to portfolio rotation, liability refinancing, expense control, and a temporary fee waiver as ways to narrow the gap with the distribution, though coverage remains short.
• Management sees potential for loan spreads and CLO equity income to improve if loan-market supply and demand move toward balance, and said it has begun to view some new-issue CLO opportunities more favorably. It also acknowledged continued uncertainty around credit quality, investor demand, and CLO equity valuations.

Sound Point Meridian Capital Stock Performance

Shares of Sound Point Meridian Capital stock traded down $0.27 on Friday, reaching $5.98. 34,203 shares of the company were exchanged, compared to its average volume of 32,838. The company’s 50-day moving average is $7.58 and its two-hundred day moving average is $9.70. The firm has a market cap of $122.57 million, a price-to-earnings ratio of -1.03 and a beta of 1.39. Sound Point Meridian Capital has a 1-year low of $5.43 and a 1-year high of $16.64.

Sound Point Meridian Capital Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Wednesday, March 31st. Stockholders of record on Monday, March 15th will be given a dividend of $0.13 per share. This represents a $1.56 dividend on an annualized basis and a dividend yield of 26.1%. The ex-dividend date is Monday, March 15th. Sound Point Meridian Capital’s dividend payout ratio is presently -26.99%.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on SPMC. B. Riley Financial decreased their target price on Sound Point Meridian Capital from $10.00 to $6.50 and set a “neutral” rating for the company in a research report on Friday. Zacks Research raised Sound Point Meridian Capital from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, October 27th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $12.83.

Top Sound Point Meridian Capital Stories

Here are a few of the latest stories about SPMC:

• Positive Sentiment: SPMC declared monthly distributions of $0.13 per share for January, February, and March 2027—$0.39 across the quarter. The announced payout is attractive to income-focused investors, though the very high indicated yield may also reflect the stock’s sharp decline and should not be taken as assurance that the distribution is sustainable. Article: Sound Point Meridian outlines Q1 2027 distributions
• Negative Sentiment: B. Riley cut its price target from $10 to $6.50 and maintained a Neutral rating. Although the new target implies some upside from the cited $6.05 share price, the substantial reduction signals a more cautious outlook. B. Riley stock recommendations
• Negative Sentiment: SPMC’s second-quarter results fell short of expectations: earnings were $0.28 per share versus a $0.29 consensus, and revenue was $12.82 million versus an estimated $13.17 million. Earnings were also down from $0.54 per share a year earlier, adding pressure to the investment case. Article: SPMC lags Q2 earnings and revenue estimates

About Sound Point Meridian Capital

Sound Point Meridian Capital, Inc. is a publicly traded investment company focused on collateralized loan obligations (CLOs). It invests primarily in CLO equity and debt securities, which provide exposure to portfolios of corporate loans. Through these investments, the company participates in the financing of businesses whose loans are held in CLO portfolios. Its investment approach centers on selecting CLO securities rather than directly originating loans to companies. Sound Point Meridian Capital is externally managed by an affiliate of Sound Point Capital Management, a credit-focused investment manager.