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TriplePoint Venture Growth BDC Corp.’s (TPVG - Free Report) fourth-quarter 2019 net investment income per share of 45 cents surpassed the Zacks Consensus Estimate of 40 cents. Also, the bottom line grew 9.8% from the year-ago quarter.
Results benefited from higher total investment and other income. Also, the company’s balance sheet position and portfolio activity remained strong in the quarter. However, rise in expenses was an undermining factor.
Net investment income of $11.1 million increased 8.5% year over year.
In 2019, net investment income was $1.54 per share, beating the consensus estimate of $1.52 but fell from $1.71 recorded in the prior year. Net investment income was $38.3 million, up 9.3%.
Total Investment Income & Expenses Rise
Total investment and other income for the reported quarter were $21.3 million, up 19.5% year over year. The rise was mainly driven by significant improvement in other income. Also, the figure beat the Zacks Consensus Estimate of $20 million.
In 2019, total investment and other income increased 13.5% to $73.4 million. It also outpaced the consensus estimate of $72.1 million.
Total operating expenses rose 34.3% year over year to $10.2 million. The increase reflected a rise in almost all expense components, except for income incentive fee.
Balance Sheet Strong
As of Dec 31, 2019, TriplePoint’s net asset value was $13.34 per share compared with $13.50 as of Dec 31, 2018.
The company had $64.1 million in liquidity, consisting of $26.4 million in cash and $37.7 million of available capacity under its revolving credit facilities, as of Dec 31, 2019.
As of Dec 31, 2019, total assets amounted to $684.1 million, up from $467.1 million as of Dec 31, 2018.
Total Portfolio Value & New Commitments
The fair value of TriplePoint’s total investment portfolio was $653.1 million as of Dec 31, 2019, up from $433.4 million as of Dec 31, 2018.
In the reported quarter, the company closed $129.1 million in new debt commitments and funded $170.9 million in debt investments.
Our Take
TriplePoint’s investment income is expected to continue improving, driven by the rise in demand for customized financing and strong economy. However, elevated expenses (witnessed in the reported quarter as well) may hurt the bottom line.
Ares Capital Corporation’s (ARCC - Free Report) fourth-quarter 2019 core earnings of 45 cents per share met the Zacks Consensus Estimate and were in line with the year-ago quarter’s figure.
Hercules Capital Inc.’s (HTGC - Free Report) fourth-quarter 2019 net investment income of 38 cents per share outpaced the Zacks Consensus Estimate of 36 cents. The bottom line grew 18.8% from the year-ago quarter’s reported figure.
Capitala Finance Corp.’s fourth-quarter 2019 net investment income per share of 12 cents missed the Zacks Consensus Estimate of 22 cents. The bottom line was 45.5% lower than the prior-year quarter’s number.
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This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
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TriplePoint (TPVG) Q4 Earnings Beat Estimates, Costs Rise
TriplePoint Venture Growth BDC Corp.’s (TPVG - Free Report) fourth-quarter 2019 net investment income per share of 45 cents surpassed the Zacks Consensus Estimate of 40 cents. Also, the bottom line grew 9.8% from the year-ago quarter.
Results benefited from higher total investment and other income. Also, the company’s balance sheet position and portfolio activity remained strong in the quarter. However, rise in expenses was an undermining factor.
Net investment income of $11.1 million increased 8.5% year over year.
In 2019, net investment income was $1.54 per share, beating the consensus estimate of $1.52 but fell from $1.71 recorded in the prior year. Net investment income was $38.3 million, up 9.3%.
Total Investment Income & Expenses Rise
Total investment and other income for the reported quarter were $21.3 million, up 19.5% year over year. The rise was mainly driven by significant improvement in other income. Also, the figure beat the Zacks Consensus Estimate of $20 million.
In 2019, total investment and other income increased 13.5% to $73.4 million. It also outpaced the consensus estimate of $72.1 million.
Total operating expenses rose 34.3% year over year to $10.2 million. The increase reflected a rise in almost all expense components, except for income incentive fee.
Balance Sheet Strong
As of Dec 31, 2019, TriplePoint’s net asset value was $13.34 per share compared with $13.50 as of Dec 31, 2018.
The company had $64.1 million in liquidity, consisting of $26.4 million in cash and $37.7 million of available capacity under its revolving credit facilities, as of Dec 31, 2019.
As of Dec 31, 2019, total assets amounted to $684.1 million, up from $467.1 million as of Dec 31, 2018.
Total Portfolio Value & New Commitments
The fair value of TriplePoint’s total investment portfolio was $653.1 million as of Dec 31, 2019, up from $433.4 million as of Dec 31, 2018.
In the reported quarter, the company closed $129.1 million in new debt commitments and funded $170.9 million in debt investments.
Our Take
TriplePoint’s investment income is expected to continue improving, driven by the rise in demand for customized financing and strong economy. However, elevated expenses (witnessed in the reported quarter as well) may hurt the bottom line.
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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
Performance of Other Finance Stocks
Ares Capital Corporation’s (ARCC - Free Report) fourth-quarter 2019 core earnings of 45 cents per share met the Zacks Consensus Estimate and were in line with the year-ago quarter’s figure.
Hercules Capital Inc.’s (HTGC - Free Report) fourth-quarter 2019 net investment income of 38 cents per share outpaced the Zacks Consensus Estimate of 36 cents. The bottom line grew 18.8% from the year-ago quarter’s reported figure.
Capitala Finance Corp.’s fourth-quarter 2019 net investment income per share of 12 cents missed the Zacks Consensus Estimate of 22 cents. The bottom line was 45.5% lower than the prior-year quarter’s number.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
See 5 Stocks Set to Double>>