Blackrock Tcp Capital (NASDAQ:TCPC) Posts Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Blackrock Tcp Capital beat earnings expectations, reporting $0.21 EPS versus the $0.20 consensus estimate and revenue of $42.58 million, above the $40.10 million forecast.
• Asset quality and leverage improved, with non-accruals falling to 2.8% of fair value and net regulatory leverage declining to 1.29x at quarter end, helped by exits and paydowns.
• NAV fell and losses weighed on results, as net asset value dropped 4.9% to $6.72 due to portfolio markdowns and $32.7 million in net realized losses from restructurings and sales.

Blackrock Tcp Capital (NASDAQ:TCPC - Get Free Report) announced its earnings results on Thursday. The investment management company reported $0.21 earnings per share for the quarter, topping analysts' consensus estimates of $0.20 by $0.01, FiscalAI reports. The business had revenue of $42.58 million for the quarter, compared to analyst estimates of $40.10 million. Blackrock Tcp Capital had a positive return on equity of 15.06% and a negative net margin of 44.07%.

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

• Non‑accruals and leverage improved — non‑accruals fell to 2.8% (fair value) and 7.6% (cost)1.29x at quarter end (improved to 1.23x post‑quarter) after $135.3M of exits/paydowns and >$50M of subsequent paydowns.
• NAV and realized losses pressured results — NAV declined 4.9% to $6.72 driven by ~$35M of portfolio markdowns (largest: Job&Talent ~ $11M and software ~ $11M) and $32.7M of net realized losses from Fishbowl and Alpine restructurings/sales.
• Portfolio mix and recent activity — $1.4B portfolio across 139 companies with 91.8% senior secured and 94.4% floating‑rate debt; software is ~30.5% of the portfolio (26% LTV at origination); new investments were modest (~$22.5M) and yielded ~8.3% versus ~11.2% on exited deals.
• Capital position and shareholder actions — liquidity of $358.6M (including $93.3M cash), full repayment of $325M 2026 notes, board declared a $0.17 Q2 dividend, and share buybacks restarted with reapproval of a $50M repurchase program.

Blackrock Tcp Capital Trading Down 3.9%

TCPC stock traded down $0.17 during trading on Friday, hitting $4.19. 1,040,400 shares of the company traded hands, compared to its average volume of 1,154,615. The firm has a market capitalization of $352.92 million, a PE ratio of -3.99 and a beta of 0.98. Blackrock Tcp Capital has a 1 year low of $3.43 and a 1 year high of $8.06. The company has a 50-day moving average of $3.93 and a 200-day moving average of $4.97. The company has a debt-to-equity ratio of 1.73, a quick ratio of 17.66 and a current ratio of 17.66.

Blackrock Tcp Capital Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Tuesday, June 16th will be issued a dividend of $0.17 per share. The ex-dividend date is Tuesday, June 16th. This represents a $0.68 annualized dividend and a yield of 16.2%. Blackrock Tcp Capital's dividend payout ratio is currently -64.76%.

Insiders Place Their Bets

In related news, COO Patrick Wolfe bought 6,850 shares of the company's stock in a transaction that occurred on Friday, March 13th. The stock was bought at an average cost of $3.65 per share, for a total transaction of $25,002.50. Following the acquisition, the chief operating officer directly owned 16,086 shares of the company's stock, valued at $58,713.90. The trade was a 74.17% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.37% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of TCPC. Marshall Wace LLP bought a new position in Blackrock Tcp Capital during the 2nd quarter valued at approximately $4,045,000. Invesco Ltd. raised its position in Blackrock Tcp Capital by 36.8% during the 3rd quarter. Invesco Ltd. now owns 1,947,348 shares of the investment management company's stock valued at $12,074,000 after purchasing an additional 524,139 shares during the last quarter. North Ground Capital raised its position in Blackrock Tcp Capital by 57.6% during the 4th quarter. North Ground Capital now owns 787,946 shares of the investment management company's stock valued at $4,310,000 after purchasing an additional 287,946 shares during the last quarter. Two Sigma Investments LP raised its position in Blackrock Tcp Capital by 22.8% during the 3rd quarter. Two Sigma Investments LP now owns 874,972 shares of the investment management company's stock valued at $5,425,000 after purchasing an additional 162,651 shares during the last quarter. Finally, Bank of America Corp DE raised its position in Blackrock Tcp Capital by 101.6% during the 2nd quarter. Bank of America Corp DE now owns 223,722 shares of the investment management company's stock valued at $1,723,000 after purchasing an additional 112,769 shares during the last quarter.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on TCPC shares. Wall Street Zen lowered Blackrock Tcp Capital from a "hold" rating to a "sell" rating in a research note on Saturday, March 7th. Keefe, Bruyette & Woods restated an "underperform" rating and issued a $3.50 target price (down from $7.00) on shares of Blackrock Tcp Capital in a research note on Tuesday, March 3rd. Zacks Research lowered Blackrock Tcp Capital from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, February 4th. Finally, Wells Fargo & Company decreased their target price on Blackrock Tcp Capital from $5.50 to $3.50 and set an "underweight" rating on the stock in a research note on Monday, March 2nd. One analyst has rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Strong Sell" and a consensus target price of $3.50.

Blackrock Tcp Capital Company Profile

BlackRock TCP Capital Corp is a publicly traded business development company (BDC) listed on the NASDAQ under the ticker TCPC. Externally managed by BlackRock, the firm provides customized financing solutions to U.S. middle-market companies, with a focus on sponsor-backed transactions. Its core strategy centers on delivering current income and capital appreciation through a diversified portfolio of debt and equity investments across a variety of sectors, including consumer products, healthcare, business services and industrials.

Since its initial public offering in 2013, BlackRock TCP Capital has partnered with private equity sponsors to underwrite and structure senior secured first-lien loans, second-lien loans, mezzanine debt and select equity co-investments.

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