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TriplePoint (TPVG) Stock Up on Q2 Earnings Beat, Costs Rise
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TriplePoint Venture Growth BDC Corp.’s (TPVG - Free Report) shares gained 1.8% in after-hours trading, following the release of second-quarter 2020 results. Net investment income of 38 cents per share surpassed the Zacks Consensus Estimate of 36 cents. However, the bottom line declined 7% from the year-ago quarter.
The 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 $11.5 million grew 14% from the prior-year quarter.
Total Investment Income & Expenses Rise
Total investment and other income amounted to $23.8 million, up 26% year over year, reflecting higher interest income from investments. Also, the figure beat the Zacks Consensus Estimate of $21.5 million.
Total operating expenses jumped 39% year over year to $12.3 million. The increase reflected a rise in almost all expense components, except for income incentive fee.
Strong Balance Sheet
As of Jun 30, 2020, TriplePoint’s net asset value was $13.17 per share compared with $13.34 on Dec 31, 2019.
The company had $165 million in liquidity — consisting of $23 million in cash and restricted cash, and $142 million available capacity under the revolving credit facilities — as of Jun 30, 2020.
As of Jun 30, 2020, total assets amounted to $718.8 million, up from $684.1 million on Dec 31, 2019.
Total Portfolio Value & New Commitments
The fair value of TriplePoint’s total investment portfolio was $692.9 million as of Jun 30, 2020, up from $496 million on Jun 30, 2019.
As of Jun 30, 2020, TriplePoint held debt investments with 37 portfolio companies, warrants in 61 portfolio companies and equity investments in 21 portfolio companies.
In the reported quarter, the company closed $13.9 million in new debt commitments to four portfolio companies and funded $20.5 million in debt investments to seven portfolio companies. Further, it had $25.1 million of principal prepayments and $12.1 million of scheduled principal amortization.
Our Take
TriplePoint’s investment income is expected to improve, driven by the rise in demand for customized financing, going forward. However, elevated expenses may hurt the bottom line.
Performance & Earnings Release Date of Other Finance Stocks
Hercules Capital Inc.’s (HTGC - Free Report) second-quarter 2020 net investment income of 32 cents per share lagged the Zacks Consensus Estimate by a penny. The bottom line also declined 11.1% from the year-ago reported figure.
Ares Capital Corporation’s (ARCC - Free Report) second-quarter 2020 core earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny. However, the bottom line declined 20.4% year over year.
FS KKR Capital Corp. (FSK - Free Report) is slated to announce quarterly results on Aug 10.
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It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
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TriplePoint (TPVG) Stock Up on Q2 Earnings Beat, Costs Rise
TriplePoint Venture Growth BDC Corp.’s (TPVG - Free Report) shares gained 1.8% in after-hours trading, following the release of second-quarter 2020 results. Net investment income of 38 cents per share surpassed the Zacks Consensus Estimate of 36 cents. However, the bottom line declined 7% from the year-ago quarter.
The 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 $11.5 million grew 14% from the prior-year quarter.
Total Investment Income & Expenses Rise
Total investment and other income amounted to $23.8 million, up 26% year over year, reflecting higher interest income from investments. Also, the figure beat the Zacks Consensus Estimate of $21.5 million.
Total operating expenses jumped 39% year over year to $12.3 million. The increase reflected a rise in almost all expense components, except for income incentive fee.
Strong Balance Sheet
As of Jun 30, 2020, TriplePoint’s net asset value was $13.17 per share compared with $13.34 on Dec 31, 2019.
The company had $165 million in liquidity — consisting of $23 million in cash and restricted cash, and $142 million available capacity under the revolving credit facilities — as of Jun 30, 2020.
As of Jun 30, 2020, total assets amounted to $718.8 million, up from $684.1 million on Dec 31, 2019.
Total Portfolio Value & New Commitments
The fair value of TriplePoint’s total investment portfolio was $692.9 million as of Jun 30, 2020, up from $496 million on Jun 30, 2019.
As of Jun 30, 2020, TriplePoint held debt investments with 37 portfolio companies, warrants in 61 portfolio companies and equity investments in 21 portfolio companies.
In the reported quarter, the company closed $13.9 million in new debt commitments to four portfolio companies and funded $20.5 million in debt investments to seven portfolio companies. Further, it had $25.1 million of principal prepayments and $12.1 million of scheduled principal amortization.
Our Take
TriplePoint’s investment income is expected to improve, driven by the rise in demand for customized financing, going forward. However, elevated expenses may hurt the bottom line.
TriplePoint Venture Growth BDC Corp. Price
TriplePoint Venture Growth BDC Corp. price | TriplePoint Venture Growth BDC Corp. Quote
Currently, the company carries a Zacks Rank #4 (Sell).
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) second-quarter 2020 net investment income of 32 cents per share lagged the Zacks Consensus Estimate by a penny. The bottom line also declined 11.1% from the year-ago reported figure.
Ares Capital Corporation’s (ARCC - Free Report) second-quarter 2020 core earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny. However, the bottom line declined 20.4% year over year.
FS KKR Capital Corp. (FSK - Free Report) is slated to announce quarterly results on Aug 10.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>