Business development company Sixth Street Specialty Lending (NYSE: TSLX) will be reporting results this Tuesday after the bell. Here’s what to look for.
Sixth Street Specialty Lending beat analysts’ revenue expectations by 3.7% last quarter, reporting revenues of $165.9 million, down 6.3% year on year. It was a very strong quarter for the company, with a solid 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, analysts are expecting Sixth Street Specialty Lending’s revenue to decline 9.5% year on year to $157.6 million, a reversal from the 5.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally 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 a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 26.3% on average.
Looking at Sixth Street Specialty Lending’s peers in the specialty finance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. PROG’s revenues decreased 1.8% year on year, beating analysts’ expectations by 1.5%, and Hercules Capital reported revenues up 10.3%, in line with consensus estimates. PROG traded down 5% following the results while Hercules Capital was up 1.6%.
Read our full analysis of PROG’s results here and Hercules Capital’s results here.
Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability in 2025. While some of the specialty finance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.8% on average over the last month. Sixth Street Specialty Lending is up 1.7% during the same time.
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