Sixth Street Specialty Lending (NYSE:TSLX) Releases Earnings Results, Meets Expectations

Sixth Street Specialty Lending (NYSE:TSLX) announced its earnings results on Tuesday. The financial services provider reported $0.44 EPS for the quarter, meeting the consensus estimate of $0.44, Zacks reports. Sixth Street Specialty Lending had a return on equity of 11.33% and a net margin of 21.79%. The business had revenue of $98.96 million during the quarter, compared to the consensus estimate of $97.59 million.

Sixth Street Specialty Lending Price Performance

Shares of NYSE:TSLX opened at $17.91 on Wednesday. The company has a current ratio of 9.83, a quick ratio of 9.83 and a debt-to-equity ratio of 1.24. Sixth Street Specialty Lending has a 1 year low of $16.04 and a 1 year high of $22.84. The business has a fifty day simple moving average of $17.83 and a 200 day simple moving average of $18.22. The firm has a market cap of $1.70 billion, a price-to-earnings ratio of 9.56 and a beta of 0.61.

Analyst Ratings Changes

Several research firms have weighed in on TSLX. Keefe, Bruyette & Woods lifted their target price on Sixth Street Specialty Lending from $18.50 to $19.50 and gave the company an “outperform” rating in a research note on Monday, August 10th. Weiss Ratings lowered shares of Sixth Street Specialty Lending from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, October 8th. Wall Street Zen upgraded shares of Sixth Street Specialty Lending from a “sell” rating to a “hold” rating in a report on Saturday, August 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 equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $19.83.

Key Headlines Impacting Sixth Street Specialty Lending

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, providing shareholders with additional income. Earnings and dividend announcement
• Positive Sentiment: Quarterly revenue was reported at $98.96 million, above analysts’ $97.59 million estimate. Revenue results
• Neutral Sentiment: Earnings reports do not agree: Zacks said quarterly earnings were $0.44 per share, above its $0.43 consensus estimate, while another report cited $0.36 per share against a $0.44 estimate. Investors may want to consult the company’s release for the reported earnings measure. Zacks earnings report
• Negative Sentiment: Zacks’ comparison showed earnings down from $0.53 per share a year earlier; the separate report also described earnings as missing consensus. This could temper the positive impact of the revenue beat and dividend announcement.

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.