Blackrock Tcp Capital (NASDAQ:TCPC) Announces Quarterly Earnings Results

Blackrock Tcp Capital (NASDAQ:TCPC) posted its earnings results on Thursday. The investment management company reported $0.22 earnings per share for the quarter, beating the consensus estimate of $0.20 by $0.02, Zacks reports. Blackrock Tcp Capital had a negative net margin of 61.27% and a positive return on equity of 13.40%. The company had revenue of $40.02 million for the quarter, compared to analyst estimates of $38.36 million.

Here are the key takeaways from Blackrock Tcp Capital’s conference call:

• The company completed a $523 million portfolio sale to a Pantheon-sponsored continuation vehicle, priced at 95% of year-end 2025 fair value, which is expected to reduce NAV by approximately 10.4% ($0.68 per share), including transaction expenses.
• Proceeds and portfolio repayments materially strengthened the balance sheet, reducing pro forma net leverage to approximately 0.4x, unfunded commitments below $40 million, and providing roughly $395 million of liquidity and more than $300 million of potential investment capacity.
• The board began a strategic review with Keefe, Bruyette & Woods that may consider reinvesting, share repurchases, returning capital, strategic combinations, or other corporate transactions; management provided no timetable or preferred outcome.
• Second-quarter NAV declined 2.1% to $6.58 per share, driven by markdowns and realized losses involving Pluralsight, PVHC, Zilliant, AutoAlert, and Become, although net investment income was $0.21 per share on an adjusted basis versus a $0.17 dividend.
• Portfolio credit trends improved, with non-accruals declining to 1.6% of fair value from 2.8% in the prior quarter, while $111.6 million of repayments in Q2 and additional post-quarter-end repayments—including expected full repayment of the $69 million Domo investment—reduced concentration and supported portfolio repositioning.

Blackrock Tcp Capital Trading Up 5.4%

Shares of Blackrock Tcp Capital stock traded up $0.21 on Friday, reaching $4.11. The company had a trading volume of 1,829,151 shares, compared to its average volume of 737,761. The firm’s 50 day moving average price is $3.42 and its two-hundred day moving average price is $3.97. The company has a debt-to-equity ratio of 1.64, a quick ratio of 21.44 and a current ratio of 21.44. Blackrock Tcp Capital has a 52-week low of $3.08 and a 52-week high of $7.28. The firm has a market cap of $344.83 million, a PE ratio of -3.21 and a beta of 0.94.

Blackrock Tcp Capital Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th will be paid a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 16.5%. The ex-dividend date of this dividend is Wednesday, September 16th. Blackrock Tcp Capital’s payout ratio is -45.64%.

Institutional Trading of Blackrock Tcp Capital

Several institutional investors have recently added to or reduced their stakes in the stock. Marshall Wace LLP purchased a new position in Blackrock Tcp Capital during the 2nd quarter valued at about $4,045,000. Invesco Ltd. increased its stake in Blackrock Tcp Capital by 36.8% during the third quarter. Invesco Ltd. now owns 1,947,348 shares of the investment management company’s stock worth $12,074,000 after purchasing an additional 524,139 shares during the period. North Ground Capital lifted its position in shares of Blackrock Tcp Capital by 57.6% during the fourth quarter. North Ground Capital now owns 787,946 shares of the investment management company’s stock worth $4,310,000 after purchasing an additional 287,946 shares in the last quarter. Two Sigma Investments LP lifted its position in shares of Blackrock Tcp Capital by 22.8% during the third quarter. Two Sigma Investments LP now owns 874,972 shares of the investment management company’s stock worth $5,425,000 after purchasing an additional 162,651 shares in the last quarter. Finally, Bank of America Corp DE boosted its stake in shares of Blackrock Tcp Capital by 101.6% in the second quarter. Bank of America Corp DE now owns 223,722 shares of the investment management company’s stock valued at $1,723,000 after purchasing an additional 112,769 shares during the period.

Key Blackrock Tcp Capital News

Here are the key news stories impacting Blackrock Tcp Capital this week:

• Positive Sentiment: TCPC reported second-quarter earnings of $0.22 per share, above the $0.20 analyst consensus, while revenue of $40.02 million also exceeded estimates of $38.36 million. The earnings beat provides a near-term fundamental catalyst. BlackRock TCP Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company announced a strategic sale of approximately $523 million of investments, reportedly representing nearly half of its loan portfolio. Management said the transaction should materially strengthen liquidity and reduce leverage, with pro forma net leverage targeted at roughly 0.4 times. BlackRock TCP Announces Second Quarter Results and Portfolio Sale
• Positive Sentiment: Keefe, Bruyette & Woods upgraded TCPC from “underperform” to “market perform,” reducing a source of analyst pressure and signaling a more balanced view of the stock’s outlook. TickerReport
• Positive Sentiment: TCPC declared a quarterly dividend of $0.17 per share, payable September 30 to shareholders of record September 16. The distribution equates to an annualized yield of approximately 16.6%, which may appeal to income-focused investors.
• Neutral Sentiment: The portfolio sale and strategic review could improve the balance sheet, but selling a large portion of the loan portfolio may reduce future investment income and leaves the company’s post-transaction strategy to be evaluated.
• Negative Sentiment: Although TCPC beat estimates, quarterly earnings of $0.22 per share were below $0.32 per share a year earlier, and the company continues to report a negative net margin.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on TCPC. Wall Street Zen upgraded Blackrock Tcp Capital from a “sell” rating to a “hold” rating in a report on Saturday, May 16th. Keefe, Bruyette & Woods raised Blackrock Tcp Capital from an “underperform” rating to a “market perform” rating in a research note on Friday. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Blackrock Tcp Capital in a research report on Tuesday, June 2nd. Two research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Blackrock Tcp Capital currently has an average rating of “Reduce” and a consensus price target of $3.50.

Blackrock Tcp Capital Company Profile

BlackRock TCP Capital Corp is a publicly traded business development company (BDC) listed on the NASDAQ under the ticker TCPC. Externally managed by BlackRock, the firm provides customized financing solutions to U.S. middle-market companies, with a focus on sponsor-backed transactions. Its core strategy centers on delivering current income and capital appreciation through a diversified portfolio of debt and equity investments across a variety of sectors, including consumer products, healthcare, business services and industrials.

Since its initial public offering in 2013, BlackRock TCP Capital has partnered with private equity sponsors to underwrite and structure senior secured first-lien loans, second-lien loans, mezzanine debt and select equity co-investments.