Eagle Point Credit (NYSE:ECC) Releases Quarterly Earnings Results, Beats Expectations By $0.14 EPS

Eagle Point Credit (NYSE:ECC) issued its quarterly earnings results on Friday. The investment management company reported $0.31 earnings per share for the quarter, topping the consensus estimate of $0.17 by $0.14, Zacks reports. Eagle Point Credit had a negative return on equity of 1.83% and a negative net margin of 84.29%.

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 Trading Up 10.1%

ECC stock traded up $0.21 during mid-day trading on Friday, reaching $2.35. The company had a trading volume of 2,416,315 shares, compared to its average volume of 1,491,431. The company has a market capitalization of $310.03 million, a PE ratio of 3.84 and a beta of 0.40. The firm has a 50 day moving average of $3.11 and a 200 day moving average of $3.78. Eagle Point Credit has a 12 month low of $2.07 and a 12 month high of $6.45. The company has a debt-to-equity ratio of 0.03, a current ratio of 0.54 and a quick ratio of 0.54.

Analyst Upgrades and Downgrades

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

About Eagle Point Credit

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.