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On Friday, TCP Capital Corp. (NASDAQ:TCPC) received a change in its stock rating from “Market Outperform” to “Market Perform” by JMP Securities following the company's mixed fourth quarter earnings. changed to “Form”.
TCP Capital reported quarterly earnings results on Wednesday, February 29, 2024, revealing NII of $0.44 per share. This was lower than JMP Securities' estimate of $0.48 and 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 of $0.67.
Analysts at JMP Securities highlighted that NII underperformed expectations due to lower interest income, missing expectations by $2 million, or 4%. This decrease in interest income was consecutive from the previous quarter, a decrease of 6%. The report also noted that TCP Capital's operating expenses remained unchanged at $25 million, in line with analyst forecasts.
Recent financial reports have shown results that are inconsistent with JMP Securities' initial expectations, and this downgrade reflects the company's revised outlook for TCP Capital stock. The rating change signals a neutral view on the investment potential of TCP Capital stock in the short term.
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