TriplePoint (TPVG) Q4 Earnings Beat Estimates, Costs Rise
Zacks Investment Research | Mar 05, 2020 06:44AM ET
TriplePoint Venture Growth BDC Corp.’s (NYSE:TPVG) fourth-quarter 2019 net investment income per share of 45 cents surpassed the Zacks Consensus Estimate of 40 cents. Also, the bottom line grew 9.8% from the year-ago quarter.
Results benefited from higher total investment and other income. Also, the company’s balance sheet position and portfolio activity remained strong in the quarter. However, rise in expenses was an undermining factor.
Net investment income of $11.1 million increased 8.5% year over year.
In 2019, net investment income was $1.54 per share, beating the consensus estimate of $1.52 but fell from $1.71 recorded in the prior year. Net investment income was $38.3 million, up 9.3%.
Total Investment Income & Expenses Rise
Total investment and other income for the reported quarter were $21.3 million, up 19.5% year over year. The rise was mainly driven by significant improvement in other income. Also, the figure beat the Zacks Consensus Estimate of $20 million.
In 2019, total investment and other income increased 13.5% to $73.4 million. It also outpaced the consensus estimate of $72.1 million.
Total operating expenses rose 34.3% year over year to $10.2 million. The increase reflected a rise in almost all expense components, except for income incentive fee.
Balance Sheet Strong
As of Dec 31, 2019, TriplePoint’s net asset value was $13.34 per share compared with $13.50 as of Dec 31, 2018.
The company had $64.1 million in liquidity, consisting of $26.4 million in cash and $37.7 million of available capacity under its revolving credit facilities, as of Dec 31, 2019.
As of Dec 31, 2019, total assets amounted to $684.1 million, up from $467.1 million as of Dec 31, 2018.
Total Portfolio Value & New Commitments
The fair value of TriplePoint’s total investment portfolio was $653.1 million as of Dec 31, 2019, up from $433.4 million as of Dec 31, 2018.
In the reported quarter, the company closed $129.1 million in new debt commitments and funded $170.9 million in debt investments.
Our Take
TriplePoint’s investment income is expected to continue improving, driven by the rise in demand for customized financing and strong economy. However, elevated expenses (witnessed in the reported quarter as well) may hurt the bottom line.
Currently, the company carries a Zacks Rank #3 (Hold). You can see .
TriplePoint Venture Growth BDC Corp. Price, Consensus and EPS Surprise
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.