Eagle Point Credit (NYSE:ECC) Issues Earnings Results

Eagle Point Credit (NYSE:ECC) posted its quarterly earnings data on Friday. The investment management company reported $0.31 earnings per share for the quarter, beating analysts’ consensus estimates of $0.18 by $0.13, Zacks reports. The company had revenue of $63.70 million during the quarter, compared to analysts’ expectations of $38.86 million. Eagle Point Credit had a negative net margin of 84.29% and a negative return on equity of 1.83%.

Here are the key takeaways from Eagle Point Credit’s conference call:

• Positive Sentiment: Net investment income less realized losses was $0.29 per share, above the $0.18 quarterly distribution. However, $0.11 per share came from an early repayment of a private credit investment; excluding it, earnings were $0.18 per share, in line with distributions.
• Negative Sentiment: NAV fell 8% in the quarter to $4.17 per share, and management estimated October month-end NAV at $3.73–$3.83. Leverage was 49% of assets, above the company’s 27.5%–37.5% target range, prompting preferred and note redemptions to reduce leverage.
• Positive Sentiment: The company is shifting capital toward private credit investments beyond CLOs, now about 38% of the portfolio versus 16% a year earlier, with management expecting that share to grow. It cited roughly 18% gross IRRs on more than $800 million invested in these strategies since 2020, though those figures exclude company-level expenses and reflect management’s reported track record.
• Negative Sentiment: Management said CLO equity returns have been pressured by loan spread compression and increased CLO issuance supported by captive, potentially less price-sensitive capital, which it sees as a medium-term market shift. It is reducing reliance on CLO equity, while refinancing and reset activity—including 20 basis points of weighted-average debt-cost savings on reopened CLOs—offers a potential offset.

Eagle Point Credit Stock Up 10.1%

Shares of Eagle Point Credit stock traded up $0.21 on Friday, hitting $2.35. 2,416,324 shares of the company’s stock traded hands, compared to its average volume of 1,754,661. The stock has a market cap of $310.03 million, a P/E ratio of 3.84 and a beta of 0.40. The company has a quick ratio of 0.54, a current ratio of 0.54 and a debt-to-equity ratio of 0.03. The firm’s 50-day moving average is $3.08 and its 200 day moving average is $3.77. Eagle Point Credit has a 52-week low of $2.07 and a 52-week high of $6.45.

Wall Street Analyst Weigh In

Separately, Credit Suisse Group set a $3.25 target price on Eagle Point Credit in a research note on Thursday, October 15th. Two analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Eagle Point Credit presently has a consensus rating of “Moderate Buy” and a consensus price target of $3.75.

Eagle Point Credit Company Profile

Eagle Point Credit Company is a publicly traded, externally managed investment company focused primarily on investments in collateralized loan obligations (CLOs). Its portfolio may include CLO equity and debt securities, as well as other investments related to CLOs and structured credit. CLOs are investment vehicles that pool loans, often loans to businesses, and issue securities with different levels of risk and payment priority. Eagle Point’s strategy centers on these securities, with exposure principally to CLOs backed by corporate loans in the United States and, where applicable, other markets.