Sixth Street Specialty Lending (NYSE:TSLX) Posts Earnings Results, Meets Estimates

Sixth Street Specialty Lending (NYSE:TSLX) released its earnings results on Tuesday. The financial services provider reported $0.44 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.44, Zacks reports. Sixth Street Specialty Lending had a net margin of 19.81% and a return on equity of 10.91%. The firm had revenue of $98.96 million during the quarter, compared to analyst estimates of $97.59 million.

Sixth Street Specialty Lending Price Performance

Shares of NYSE TSLX traded down $0.27 during trading on Thursday, reaching $17.54. The company had a trading volume of 193,602 shares, compared to its average volume of 716,229. The company has a debt-to-equity ratio of 1.24, a quick ratio of 9.83 and a current ratio of 9.83. The business’s 50 day moving average price is $17.81 and its 200-day moving average price is $18.20. Sixth Street Specialty Lending has a 52 week low of $16.04 and a 52 week high of $22.84. The stock has a market cap of $1.67 billion, a PE ratio of 20.90 and a beta of 0.61.

Sixth Street Specialty Lending Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Tuesday, December 15th will be issued a dividend of $0.42 per share. The ex-dividend date of this dividend is Tuesday, December 15th. This represents a $1.68 dividend on an annualized basis and a yield of 9.6%. Sixth Street Specialty Lending’s dividend payout ratio is currently 200.00%.

More Sixth Street Specialty Lending News

Here are the key news stories impacting Sixth Street Specialty Lending this week:

• Positive Sentiment: Third-quarter revenue was $98.96 million, above the $97.59 million analyst estimate. EPS was $0.44—above Zacks’ $0.43 estimate, though in line with the $0.44 consensus cited by another report. Earnings results and dividend announcement
• Positive Sentiment: The company declared a $0.42-per-share fourth-quarter base dividend and a $0.01 supplemental dividend, supporting income-focused investors. Dividend announcement
• Positive Sentiment: Management expects full-year return on equity of 10%–10.5% and portfolio turnover below 20%, offering investors an indication of its outlook and portfolio stability. Full-year ROE and turnover outlook
• Negative Sentiment: Quarterly EPS declined from $0.53 a year earlier to $0.44, a year-over-year earnings contraction that may temper the positive revenue and dividend news. Q3 earnings comparison

Analysts Set New Price Targets

TSLX has been the subject of a number of research analyst reports. Keefe, Bruyette & Woods upped their price target on Sixth Street Specialty Lending from $18.50 to $19.50 and gave the stock an “outperform” rating in a report on Monday, August 10th. Wall Street Zen raised shares of Sixth Street Specialty Lending from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Finally, 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. Five investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $19.83.

About Sixth Street Specialty Lending

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.