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

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

Sixth Street Specialty Lending Stock Performance

Shares of NYSE:TSLX traded up $0.10 on Wednesday, hitting $18.00. 119,274 shares of the company were exchanged, compared to its average volume of 715,708. The company has a current ratio of 9.83, a quick ratio of 9.83 and a debt-to-equity ratio of 1.24. The stock’s 50 day moving average price is $17.83 and its 200 day moving average price is $18.22. Sixth Street Specialty Lending has a 1-year low of $16.04 and a 1-year high of $22.84. The firm has a market capitalization of $1.71 billion, a P/E ratio of 18.93 and a beta of 0.61.

Sixth Street Specialty Lending Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Tuesday, December 15th will be paid a dividend of $0.42 per share. The ex-dividend date is Tuesday, December 15th. This represents a $1.68 dividend on an annualized basis and a yield of 9.3%. Sixth Street Specialty Lending’s dividend payout ratio is presently 176.84%.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on TSLX shares. Weiss Ratings lowered Sixth Street Specialty Lending from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, October 8th. 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. 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. Finally, Wall Street Zen raised shares of Sixth Street Specialty Lending from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Five analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $19.83.

Sixth Street Specialty Lending News Roundup

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, equivalent to $1.68 annualized and a reported 9.4% yield. It also declared a $0.01 supplemental dividend. The payouts may support investor interest in the stock’s income profile. Sixth Street Specialty Lending Q3 results and dividends
• Positive Sentiment: Third-quarter revenue was $98.96 million, above the $97.59 million estimate. EPS of $0.44 was in line with one consensus estimate and topped Zacks’ $0.43 forecast, offering a modest earnings-positive signal. Sixth Street tops Q3 earnings and revenue estimates
• Negative Sentiment: EPS declined from $0.53 in the year-ago quarter to $0.44, indicating weaker year-over-year earnings despite the slight estimate beat.

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.