TICC Capital Corp. (TICC) delivered a solid earnings surprise of 48.2% in the second quarter of 2012 and has amassed an average surprise of 28.2% over the past four quarters. Continued improvement in investment income should help this non-diversified management investment company to grow profitability in the upcoming quarters. With a P/B multiple of just 1.01, this Zacks #2 Rank (Buy) stock is an attractive pick for value investors.
Impressive Second Quarter Results
On July 30, TICC Capital reported second quarter 2012 net investment income of 40 cents per share, significantly outpacing the Zacks Consensus Estimate of 27 cents and the year-ago earnings of 29 cents. Results improved on the back of impressive total investment income growth. Nevertheless, considerably higher expenses partially impacted the results.
Total investment income of $20.5 million surged 83.8% from the year-ago quarter. Total expenses were $5.4 million, up significantly from $1.6 million in the prior-year quarter, reflecting higher incentive fees.
Earnings Momentum on an Upswing
Over the last 7 days, the Zacks Consensus Estimate for 2012 increased 2.7% to $1.14 per share with two of four estimates revised upward. This implies year-over-year growth of 23.9%. For 2013, the Zacks Consensus Estimate is $1.13, marking an upswing of 1.8% over the last 90 days.
Reasonable Valuation
Along with a P/B multiple of 1.01, TICC Capital has a forward P/E ratio of 8.6 (A P/E ratio under 15.0 and P/B ratio under 3.0 generally indicate value). Furthermore, over the last year, the company's share price has gained nearly 10%.
Additionally, TICC Capital currently enjoys a stupendous dividend yield of 11.02%. Therefore, in addition to being a value stock, the company also offers a steady income opportunity.
Headquartered in Greenwich, Connecticut, TICC Capital is largely engaged in providing finance to technology-related companies. The company primarily focuses on investments in companies having annual revenues of less than $200 million and a market capitalization or enterprise value of less than $300 million. Incorporated in July 2003, the company started trading on NASDAQ from November 2003. With a market capitalization of about $370.0 million, TICC Capital competes with Fifth Street Finance Corp. (FSC) and Hercules Technology Growth Capital Inc. (HTGC).
TICC CAPITAL CP (TICC): Free Stock Analysis Report
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