Sixth Street Specialty Lending (NYSE:TSLX) Announces Quarterly Earnings Results

Key Points

• Sixth Street Specialty Lending reported quarterly EPS of $0.36, missing the $0.44 consensus estimate by $0.08. Revenue was $98.96 million, slightly above the $97.59 million estimate.
• Shares fell 1.5% to $17.91 on Tuesday, underperforming their average trading volume.
• Analysts’ consensus rating is Moderate Buy, with a $19.83 average price target; Keefe, Bruyette & Woods raised its target to $19.50 and maintained an outperform rating.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) posted its earnings results on Tuesday. The financial services provider reported $0.36 EPS for the quarter, missing the consensus estimate of $0.44 by ($0.08), FiscalAI reports. Sixth Street Specialty Lending had a net margin of 21.79% and a return on equity of 11.33%. The firm had revenue of $98.96 million during the quarter, compared to the consensus estimate of $97.59 million.

Sixth Street Specialty Lending Trading Down 1.5%

NYSE:TSLX traded down $0.26 on Tuesday, reaching $17.91. 437,964 shares of the stock traded hands, compared to its average volume of 719,041. The firm has a market capitalization of $1.70 billion, a price-to-earnings ratio of 18.85 and a beta of 0.62. Sixth Street Specialty Lending has a 1-year low of $16.04 and a 1-year high of $22.84. The company has a current ratio of 9.83, a quick ratio of 9.83 and a debt-to-equity ratio of 1.24. The company's 50 day moving average is $17.85 and its 200-day moving average is $18.24.

Analyst Upgrades and Downgrades

TSLX has been the topic of several research reports. Weiss Ratings cut Sixth Street Specialty Lending from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, October 8th. Wall Street Zen upgraded shares of Sixth Street Specialty Lending from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. Zacks Research upgraded shares of Sixth Street Specialty Lending from a "strong sell" rating to a "hold" rating in a research report on Tuesday, July 7th. Finally, Keefe, Bruyette & Woods lifted their target price on shares of Sixth Street Specialty Lending from $18.50 to $19.50 and gave the stock an "outperform" rating in a research report on Monday, August 10th. Five investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Sixth Street Specialty Lending presently has a consensus rating of "Moderate Buy" and a consensus target price of $19.83.

About Sixth Street Specialty Lending

Sixth Street Specialty Lending, Inc is a business development company (BDC) that provides financing to middle-market companies. The company primarily invests in privately negotiated debt and equity investments, with a focus on supporting businesses that may have limited access to traditional bank financing.

Its investment portfolio generally includes first-lien and second-lien loans, unitranche financing, mezzanine debt, and related equity investments. Sixth Street Specialty Lending seeks to generate income through interest payments and other investment returns while providing customized financing solutions for acquisitions, recapitalizations, refinancings, growth initiatives, and other corporate purposes.

The company was formed in 2011 and is externally managed by an affiliate of Sixth Street, an investment firm focused on credit and other asset classes.

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