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TriplePoint (TPVG) Stock Down 2.9% as Q1 Earnings Fall Y/Y

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Shares of TriplePoint (TPVG - Free Report) depreciated 2.9% during after-market trading following the release of first-quarter 2021 results. The company’s net investment income was came in at 29 cents per share. The bottom line plunged 29.3% from the year-ago quarter.

In the reported quarter, the company recorded a decline in total investment income. Further, higher expenses hurt results to some extent. However, decent portfolio activity was a tailwind.

Net investment income was $8.9 million, down 27% year over year.

Total Investment Income Down, Expenses Rise

Total investment and other income for the quarter amounted to $20 million, down 4.2% year over year, reflecting lower interest income from investments and other income.

Total operating expenses flared up 28.6% year over year to $11.1 million. This upswing was mainly due to rise in base management fee, income incentive fee, interest expense and amortization of fees, and general and administrative expenses.

Strong Balance Sheet

As of Mar 31, 2021, TriplePoint Venture’s net asset value was $13.00 per share compared with $12.97 on Dec 31, 2020.

The company had $466.1 million in liquidity, consisting of $116.1 million in cash and restricted cash, and $350 million available capacity under its credit facility as of Mar 31, 2021. The credit facility figure excluded an additional $50 million available under the facility’s accordion feature.

As of Mar 31, 2021, total assets amounted to $755.1 million, up from $683.5 million on Dec 31, 2020.

Total Portfolio Value & New Commitments Decent

The fair value of TriplePoint Venture’s total investment portfolio was $633.7 million as of Mar 31, 2021, down from $713.2 million on Mar 31, 2020.

As of Mar 31, 2021, TriplePoint Venture held debt investments with 33 portfolio companies, warrants in 67 portfolio companies and equity investments in 27 portfolio companies.

In the reported quarter, the company entered into $90.4 million of new debt commitments with seven portfolio companies and funded $56.9 million in debt investments to seven portfolio companies. Further, during the quarter, it recorded $36 million of principal prepayments and $15.1 million of scheduled principal amortization.

Our View

TriplePoint Venture’s decent portfolio activity is likely to act as a tailwind, while elevated expenses and declining total interest income remain major concerns.

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 Schedule of Other Finance Stocks

Hercules Capital Inc.’s (HTGC - Free Report) first-quarter 2021 net investment income of 30 cents per share surpassed the Zacks Consensus Estimate of 29 cents. However, the bottom line declined 18.9% from the year-ago reported figure.

Ares Capital Corporation’s (ARCC - Free Report) first-quarter 2021 core earnings of 43 cents per share surpassed the Zacks Consensus Estimate of 42 cents. Moreover, the bottom line reflected a year-over-year rise of 4.9%.

Barings BDC, Inc. (BBDC - Free Report) is slated to announce quarterly results on May 7.

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