Carlyle Secured Lending (CGBD) Stock

Carlyle Secured Lending Inc. (NASDAQ:CGBD ) Q3 2024 Earnings Conference Call November 6, 2024 11:00 AM ET Company Participants Nishil Mehta - Head of Shareholder Relations Justin Plouffe - Chief Executive Officer Thomas Hennigan - Chief Financial Officer Conference Call Participants Bryce Rowe - B. Riley Melissa Wedel - JPMorgan Operator Good day and thank you for standing by and welcome to the Carlyle Secured Lending Inc. Third Quarter 2024 Earnings Conference Call.

Carlyle Secured Lending, Inc. (CGBD) came out with quarterly earnings of $0.49 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.52 per share a year ago.

The recent BDC market dynamics indicate that quality will play an important role over the foreseeable future. Looking at the recent quarterly earnings data that have been published by many BDCs, we can see a clear divergence between high quality and aggressive BDCs. In this article, I elaborate on two BDCs that have become more attractive for investors, who prioritize defensive and predictable yield.

Carlyle Secured Lending's (CGBD) merger with CSL III is projected to offer significant value and advantages to investors in the short term and over the long run.

Carlyle Secured Lending, Inc. (CGBD) came out with quarterly earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.50 per share. This compares to earnings of $0.52 per share a year ago.

Carlyle Secured Lending is a BDC that offers funding to middle market companies in the US, primarily through first-lien debt. CGBD saw a 5.5% rise in net investment income in 2023, with solid asset quality. The 2028 debt securities have a yield to call of around 7.1-7.2% and a yield to maturity of approximately 7.75-7.8%.

Carlyle Secured Lending has demonstrated strong performance, surpassing the BDC index with a year-to-date total return of 12.8%. Q4 2023 earnings were impressive, with net investment income per share rising by 8% and base dividend coverage increasing to 140%. The company anticipates steady earnings for the remainder of 2024 due to the strong and improving credit performance of its current portfolio.

Carlyle Secured Lending has re-rated to net asset value, limiting potential for further valuation upside. The business development company reported solid Q4 results, out-earning its dividend and raising it by 8%. With positive developments already reflected in the stock price, the appreciation potential is limited, leading to a Hold rating.

NEW YORK, Jan. 23, 2024 (GLOBE NEWSWIRE) -- Carlyle Secured Lending, Inc. (“Carlyle Secured Lending”) (NASDAQ: CGBD) will host a conference call at 11:00 a.m. EST on Tuesday, February 27, 2024 to announce its fourth quarter and full year 2023 financial results, updated from 10:00 a.m. EST as part of the prior announcement. A news release containing the quarterly results will be issued after market close on Monday, February 26, 2024.