CCAP Stock Recent News

Crescent Capital BDC (CCAP) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.

An investor's cash flow should be measured alongside net worth as a measure of financial resiliency. Crescent Capital offers an 8.9% yield, focusing on first-lien loans in cash flow-generating, private equity-backed middle-market businesses, with a robust portfolio and strong financials. Federal Realty, a top-tier REIT, provides a 3.9% yield, high-quality mixed-use properties in affluent areas, and a 57-year streak of dividend increases.

Crescent Capital BDC has a well-diversified, defensive portfolio with 89.2% first-lien debt and decreasing non-accruals, indicating high portfolio quality. CCAP is sensitive to interest rate cuts due to its floating-rate debt investments, but lower interest expenses and increased market activity could somewhat offset this. Despite potential interest rate cuts, CCAP's dividends remain well-covered, with a strong net investment income per share providing robust dividend coverage.

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In the current environment, it is indeed difficult for BDCs to achieve premium over NAV. However, as the earnings and dividends continue to remain strong in the sector, I see no reason for significant discounts to NAV. In this article, I have identified two BDCs, which trade at a steep discount to their net asset values despite robust fundamentals. It clearly provides an opportunity for investors.

Weak asset quality high rates and macroeconomic woes are likely to hurt Zacks SBIC & Commercial Finance industry players like Golub Capital (GBDC), Barings BDC (BBDC) and Crescent Capital (CCAP). Yet, a rise in financing demand across sectors is likely to aid.

Recently, Crescent Capital has outperformed the BDC market delivering positive returns, while the index has dropped in the negative return territory. Q2, 2024 earnings deck helps explain this, where we can see a continued generation of robust cash flows, solid portfolio quality and improved transaction outlook. In this article, I dissect the Q2 earnings and explain in detail why I have remained bullish.

Crescent Capital BDC, Inc. (NASDAQ:CCAP ) Q2 2024 Results Conference Call August 13, 2024 12:00 PM ET Company Participants Dan McMahon - Head of Investor Relations Jason Breaux - Chief Executive Officer Henry Chung - President Gerhard Lombard - Chief Financial Officer Conference Call Participants Robert Dodd - Raymond James Paul Johnson - KBW Finian O'Shea - Wells Fargo Derek Hewett - Bank of America Operator Good day, everyone and welcome to the Q2 2024 Crescent Capital BDC Earnings Conference Call. At this time, all participants are in a listen-only mode.

Crescent Capital BDC (CCAP) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.56 per share a year ago.

Crescent Capital BDC, Inc. is a well-managed business development company with a floating-rate focus and solid dividend metrics. The company pays growing supplemental dividends and has a low pay-out ratio, but may face challenges in a lower-rate environment. Crescent Capital is trading at a 4% discount to book value, but may disappoint investors due to its aggressive floating-rate posture and potential impact of rate cuts.