Sixth Street Specialty Lending (NYSE:TSLX) Posts Quarterly Earnings Results, Misses Expectations By $0.08 EPS

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

Sixth Street Specialty Lending Trading Down 1.5%

Shares of Sixth Street Specialty Lending stock traded down $0.26 during midday trading on Tuesday, reaching $17.91. The company had a trading volume of 437,964 shares, compared to its average volume of 719,041. The stock has a fifty day moving average price of $17.85 and a 200 day moving average price of $18.24. The company has a debt-to-equity ratio of 1.24, a current ratio of 9.83 and a quick ratio of 9.83. The firm has a market cap of $1.70 billion, a PE ratio of 18.85 and a beta of 0.62. Sixth Street Specialty Lending has a fifty-two week low of $16.04 and a fifty-two week high of $22.84.

Sixth Street Specialty Lending News Summary

Here are the key news stories impacting Sixth Street Specialty Lending this week:

• Positive Sentiment: TSLX declared a fourth-quarter base dividend of $0.42 per share and a third-quarter supplemental dividend, supporting the stock’s income appeal. The announcement provided here does not specify the supplemental amount. Earnings and dividend announcement
• Positive Sentiment: Third-quarter revenue was $98.96 million, above the $97.59 million consensus estimate. Q3 sales top estimates
• Negative Sentiment: Quarterly EPS was $0.36, missing the $0.44 consensus by $0.08. The earnings shortfall may weigh on sentiment despite the revenue beat. Quarterly results

Analyst Ratings Changes

Several equities research analysts recently commented on the stock. Wall Street Zen upgraded shares of Sixth Street Specialty Lending from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Keefe, Bruyette & Woods upped their price target on shares of Sixth Street Specialty Lending from $18.50 to $19.50 and gave the company an “outperform” rating in a research report on Monday, August 10th. Weiss Ratings downgraded shares of Sixth Street Specialty Lending from a “hold (c)” rating to a “hold (c-)” rating in a research note on Thursday, October 8th. Finally, Zacks Research upgraded shares of Sixth Street Specialty Lending from a “strong sell” rating to a “hold” rating in a report on Tuesday, July 7th. Five investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, Sixth Street Specialty Lending currently has a consensus rating of “Moderate Buy” and a consensus target price of $19.83.

Sixth Street Specialty Lending Company Profile

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.