Blackrock Tcp Capital (NASDAQ:TCPC) Releases Quarterly Earnings Results, Misses Expectations By $0.92 EPS

Key Points

• BlackRock TCP Capital reported EPS of -$0.80, missing analyst expectations of $0.12 by $0.92, while quarterly revenue of $28.48 million beat the $27.51 million consensus.
• The strategic-alternatives review remains ongoing with no outcome or timeline announced. Liquidity increased to $511 million and net regulatory leverage fell to 0.16x; management is holding cash rather than making new investments during the review.
• NAV declined $0.97 per share to $5.61, while adjusted net investment income of $0.15 per share fell short of the $0.17 dividend. Non-accruals rose to 14.2% of portfolio cost as the portfolio contracted to $544 million.

Blackrock Tcp Capital (NASDAQ:TCPC - Get Free Report) announced its quarterly earnings results on Thursday. The investment management company reported ($0.80) EPS for the quarter, missing analysts' consensus estimates of $0.12 by ($0.92), FiscalAI reports. Blackrock Tcp Capital had a negative net margin of 61.27% and a positive return on equity of 13.85%. 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 Price Performance

Shares of NASDAQ TCPC traded down $0.10 during midday trading on Thursday, hitting $4.27. 2,015,469 shares of the company's stock were exchanged, compared to its average volume of 933,984. Blackrock Tcp Capital has a 12-month low of $3.08 and a 12-month high of $6.25. The company has a current ratio of 33.70, a quick ratio of 33.70 and a debt-to-equity ratio of 1.65. The company has a market cap of $358.25 million, a price-to-earnings ratio of -3.34 and a beta of 0.98. The business's fifty day moving average price is $4.07 and its two-hundred day moving average price is $4.00.

Analyst Ratings Changes

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

About Blackrock Tcp Capital

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.

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