TSLX Earnings Prediction
The chart below shows how TSLX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TSLX sees a -1.04% change in stock price 10 days leading up to the earnings, and a +0.89% change 10 days following the report. On the earnings day itself, the stock moves by +0.66%. This data can give you a slight idea of what to expect for the next quarter's release.
TSLX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
114.07M
1.93%
1.00%
Gross Margin
--
--
--
Operating Margin
76.07%
-0.81%
-0.56%
Net Margin
41.55%
-12.42%
-1.24%
EPS
0.51
-19.05%
-3.77%
No Data Available
TSLX Earnings Analysis
Sixth Street Specialty Lending, Inc. Corporation (TSLX.N) Earnings Conference Call
Positive
Sixth Street Specialty Lending, Inc. reported a second-quarter adjusted net investment income of $0.58 per share, representing an annualized return on equity of 13.5%.
Earnings call highlighted an adjusted net income of $0.50 per share, equivalent to an annualized return on equity of 11.6%.
The company achieved a new all-time high net asset value per share at $17.19, showing a 2.7% increase year-over-year and an annualized growth of 3.4% since inception.
The strong performance indicates the company's growth and stability over time.
Sixth Street Specialty Lending, Inc. demonstrated a disciplined approach to capital allocation, passing on deals with spreads below the industry's cost of equity.
The company actively avoids investments that do not meet required return profiles, ensuring shareholder value creation.
The company participated in several large-cap transactions during the quarter, showcasing the power of its platform in navigating between small and large opportunities.
This strategic flexibility enables the company to maintain a steady deployment pace and diversify its portfolio effectively.
Despite increased competition in the private credit market, Sixth Street Specialty Lending, Inc. maintained a strong portfolio yield with well-performing core companies.
The company's conservative approach to risk management, strong relationships with borrowers, and focus on growth momentum contributed to robust portfolio performance.
Sixth Street Specialty Lending, Inc. announced a base quarterly dividend of $0.46 per share and a supplemental dividend of $0.06 per share, reflecting a commitment to rewarding shareholders.
The company's consistent dividend payments and proactive approach to shareholder returns underscore its financial strength and stability.
Negative
- The company experienced a decline in weighted average yield on debt and income-producing securities from 14.0% to 13.9% quarter-over-quarter, indicating a decrease in return on investments.
- Net unrealized losses from portfolio company-specific events resulted in a $0.08 per share decline in NAV, primarily driven by markdowns on investments like lithium technologies that did not perform as expected.
- Competition has increased in the private credit market, leading to tighter spreads and increased spread tightening, resulting in an increase in repricing requests and potential risk of credit losses.
- While the weighted average interest coverage slightly increased from 2.0 times to 2.1 times quarter-over-quarter, the increase in repayments due to spread tightening may signal potential refinancing challenges for portfolio companies.
- The company passed on refinancing transactions like those for ReliaQuest and Homecare Software Solutions, highlighting the challenging environment for disciplined capital allocation and potential missed opportunities for additional returns.
- The decline in weighted average yield at amortized cost of new investments to 12.5% compared to a yield of 14.1% on fully exited investments suggests a potential impact on future income generation and returns.
TSLX FAQs
How does TSLX typically perform around its earnings report dates?
Is Sixth Street Specialty Lending, Inc. (TSLX) Q2 2024 Earnings Call Summary positive or negative?
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TSLX Earning Call Sentiment
Sixth Street Specialty Lending, Inc. (TSLX) Q2 2024 Earnings Call Transcript
1.0x
00:00
00:00
TSLX.N
1.73%Positive
The earnings call summary shows solid financial performance with increased dividends, stable credit quality, and improved NAV. The Q&A reveals management's bullish stance on recent vintages and successful European expansion. Concerns about credit deterioration and market conditions are addressed, with management showing confidence in their strategies. The market cap suggests a moderate reaction, leading to a positive prediction (2% to 8%).
