Earnings To Watch: Sixth Street Specialty Lending (TSLX) Reports Q1 Results Tomorrow

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Business development company Sixth Street Specialty Lending (NYSE: TSLX) will be reporting results this Tuesday after market hours. Here’s what to expect.

Sixth Street Specialty Lending beat analysts’ revenue expectations last quarter, reporting revenues of $108.2 million, down 12.5% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a decent beat of analysts’ revenue estimates.

Is Sixth Street Specialty Lending a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Sixth Street Specialty Lending’s revenue to decline 11.5% year on year, a further deceleration from the 1.2% decrease it recorded in the same quarter last year.

Sixth Street Specialty Lending Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sixth Street Specialty Lending has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Sixth Street Specialty Lending’s peers in the financial services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. PROG delivered year-on-year revenue growth of 11.1%, meeting analysts’ expectations, and Euronet Worldwide reported revenues up 10.5%, topping estimates by 4.3%. PROG traded up 24.1% following the results while Euronet Worldwide was down 4.4%.

Read our full analysis of PROG’s results here and Euronet Worldwide’s results here.

There has been positive sentiment among investors in the financial services segment, with share prices up 8.8% on average over the last month. Sixth Street Specialty Lending is up 4.9% during the same time and is heading into earnings with an average analyst price target of $21.91 (compared to the current share price of $19.47).

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