BlackRock TCP Capital shares tumble 9% after Q4 earnings miss

Published 27/02/2025, 18:32
BlackRock TCP Capital shares tumble 9% after Q4 earnings miss

SANTA MONICA, Calif. - BlackRock TCP Capital Corp . (NASDAQ:TCPC) reported fourth quarter adjusted earnings that narrowly missed analyst estimates, sending shares tumbling over 9% in trading.

The business development company posted adjusted net investment income of $0.36 per share for Q4 2024, falling short of the $0.37 per share analysts were expecting. This compares to adjusted net investment income of $0.40 per share in the prior quarter.

Net asset value per share declined to $9.23 as of December 31, 2024, down from $10.11 at the end of September 2024. The company cited higher non-accruals and lower base rates as factors impacting results.

"While the vast majority of our portfolio continued to perform well, we are working closely with our borrowers and sponsors to resolve the portfolio issues that impacted our results in recent quarters," said Phil Tseng, Chairman and CEO of BlackRock TCP Capital Corp.

Total (EPA:TTEF) investment income for Q4 was $61.2 million, or $0.72 per share. This included $0.06 per share from prepayment premiums and related accelerated original issue discount and exit fee amortization.

The company’s board declared a first quarter dividend of $0.25 per share, down from the previous $0.34 quarterly payout. An additional special dividend of $0.04 per share was also declared for Q1 2025.

As of December 31, 2024, TCPC’s investment portfolio consisted of debt and equity positions in 154 portfolio companies with a total fair value of approximately $1.8 billion. Debt investments in twelve portfolio companies were on non-accrual status, representing 5.6% of the portfolio at fair value.

The stock was down 9.1% following the earnings release, as investors reacted negatively to the earnings miss and dividend reduction.

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