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TriplePoint Venture (TPVG) Q3 Earnings Beat, Expenses Up
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TriplePoint Venture Growth BDC Corp.’s (TPVG - Free Report) third-quarter 2020 net investment income of 40 cents per share outpaced the Zacks Consensus Estimate of 36 cents. Also, the bottom line improved 38% from the year-ago quarter.
Results benefited from an increase in total investment income and a strong balance sheet position. Further, decent portfolio activity was a tailwind. However, higher expenses hurt the same to some extent.
Net investment income of $12.2 million surged 72% year over year.
Total Investment Income & Expenses Rise
Total investment and other income amounted to $23.2 million, up 47% year over year, reflecting higher interest income from investments. Moreover, the figure beat the Zacks Consensus Estimate of $23 million.
Total operating expenses jumped 27% to $10.9 million. The increase reflected a rise in almost all expense components, except for administration agreement expenses, and general and administrative expenses.
Strong Balance Sheet
As of Sep 30, 2020, TriplePoint Venture’s net asset value was $13.28 per share compared with $13.34 on Dec 31, 2019.
The company had $213.7 million in liquidity, consisting of $25.7 million in cash and restricted cash, and $188 million available capacity under the revolving credit facilities as of Sep 30, 2020. The revolving credit facility figure excluded an additional $100.0 million available under the facility.
As of Sep 30, 2020, total assets amounted to $675.4 million, down from $684.1 million on Dec 31, 2019.
Total Portfolio Value & New Commitments
The fair value of TriplePoint Venture’s total investment portfolio was $646.8 million as of Sep 30, 2020, up from $526 million on Sep 30, 2019.
As of Sep 30, 2020, TriplePoint Venture held debt investments with 34 portfolio companies, warrants in 65 portfolio companies and equity investments in 23 portfolio companies.
In the reported quarter, the company closed $86.8 million in new debt commitments to nine portfolio companies and funded $38 million in debt investments to five portfolio companies. Further, it had $49.1 million of principal prepayments, $17 million of early repayments and $19.4 million of scheduled principal amortization.
Our View
TriplePoint Venture’s investment income is expected continue improving, driven by the rise in demand for customized financing. However, mounting operating expenses are likely to hurt the bottom line to some extent.
TriplePoint Venture Growth BDC Corp. Price, Consensus and EPS Surprise
Performance & Earnings Release Date of Other Finance Stocks
Hercules Capital Inc.’s (HTGC - Free Report) third-quarter 2020 net investment income of 34 cents per share surpassed the Zacks Consensus Estimate of 32 cents. However, the bottom line declined 8.1% from the year-ago reported figure.
Ares Capital Corporation’s (ARCC - Free Report) third-quarter 2020 core earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny. However, the bottom line declined 18.8% year over year.
Barings BDC, Inc. (BBDC - Free Report) is slated to announce quarterly results on Nov 10.
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TriplePoint Venture (TPVG) Q3 Earnings Beat, Expenses Up
TriplePoint Venture Growth BDC Corp.’s (TPVG - Free Report) third-quarter 2020 net investment income of 40 cents per share outpaced the Zacks Consensus Estimate of 36 cents. Also, the bottom line improved 38% from the year-ago quarter.
Results benefited from an increase in total investment income and a strong balance sheet position. Further, decent portfolio activity was a tailwind. However, higher expenses hurt the same to some extent.
Net investment income of $12.2 million surged 72% year over year.
Total Investment Income & Expenses Rise
Total investment and other income amounted to $23.2 million, up 47% year over year, reflecting higher interest income from investments. Moreover, the figure beat the Zacks Consensus Estimate of $23 million.
Total operating expenses jumped 27% to $10.9 million. The increase reflected a rise in almost all expense components, except for administration agreement expenses, and general and administrative expenses.
Strong Balance Sheet
As of Sep 30, 2020, TriplePoint Venture’s net asset value was $13.28 per share compared with $13.34 on Dec 31, 2019.
The company had $213.7 million in liquidity, consisting of $25.7 million in cash and restricted cash, and $188 million available capacity under the revolving credit facilities as of Sep 30, 2020. The revolving credit facility figure excluded an additional $100.0 million available under the facility.
As of Sep 30, 2020, total assets amounted to $675.4 million, down from $684.1 million on Dec 31, 2019.
Total Portfolio Value & New Commitments
The fair value of TriplePoint Venture’s total investment portfolio was $646.8 million as of Sep 30, 2020, up from $526 million on Sep 30, 2019.
As of Sep 30, 2020, TriplePoint Venture held debt investments with 34 portfolio companies, warrants in 65 portfolio companies and equity investments in 23 portfolio companies.
In the reported quarter, the company closed $86.8 million in new debt commitments to nine portfolio companies and funded $38 million in debt investments to five portfolio companies. Further, it had $49.1 million of principal prepayments, $17 million of early repayments and $19.4 million of scheduled principal amortization.
Our View
TriplePoint Venture’s investment income is expected continue improving, driven by the rise in demand for customized financing. However, mounting operating expenses are likely to hurt the bottom line to some extent.
TriplePoint Venture Growth BDC Corp. Price, Consensus and EPS Surprise
TriplePoint Venture Growth BDC Corp. price-consensus-eps-surprise-chart | TriplePoint Venture Growth BDC Corp. Quote
Currently, TriplePoint Venture carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance & Earnings Release Date of Other Finance Stocks
Hercules Capital Inc.’s (HTGC - Free Report) third-quarter 2020 net investment income of 34 cents per share surpassed the Zacks Consensus Estimate of 32 cents. However, the bottom line declined 8.1% from the year-ago reported figure.
Ares Capital Corporation’s (ARCC - Free Report) third-quarter 2020 core earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny. However, the bottom line declined 18.8% year over year.
Barings BDC, Inc. (BBDC - Free Report) is slated to announce quarterly results on Nov 10.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>