On Friday, TCP Capital Corp (NASDAQ:TCPC) experienced a shift in stock rating by JMP Securities, moving from 'Market Outperform' to 'Market Perform' following the company's mixed fourth-quarter earnings.
TCP Capital reported its quarterly earnings on Wednesday, February 29, 2024, revealing a NII of $0.44 per share, which was below JMP Securities' estimate of $0.48 and the consensus estimate of $0.47. Additionally, the company's GAAP earnings per share (EPS) was reported at a loss of ($0.22), primarily due to net realized and unrealized losses amounting to $0.67.
The analyst from JMP Securities highlighted that the NII did not meet their expectations due to a decrease in interest income, which fell short by $2 million, or 4%, compared to their estimate. This decline in interest income represented a 6% sequential drop from the previous quarter. The report also noted that operating expenses for TCP Capital remained consistent at $25 million, aligning with the analyst's projections.
The downgrade reflects the firm's revised outlook on TCP Capital's stock, as the recent earnings report indicates financial results that did not align with JMP Securities' initial predictions. The change in rating suggests a neutral perspective on the investment potential of TCP Capital's shares in the near term.
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