Eagle Point Income (NYSE:EIC) Posts Earnings Results, Beats Estimates By $0.04 EPS

by · The Markets Daily

Eagle Point Income (NYSE:EIC – Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.33 by $0.04, Zacks reports.

Here are the key takeaways from Eagle Point Income’s conference call:

  • NAV rose 4% to $12.52 per share in the second quarter, producing a 7.1% GAAP return on equity as loan prices and CLO valuations recovered from first-quarter volatility.
  • The company deployed $39 million into new investments at a 17.9% weighted-average effective yield and rotated capital toward higher-conviction CLO and private-credit opportunities, while CLO resets and refinancings reduced financing costs by an average of 33 basis points.
  • Credit fundamentals remained resilient, with the broader loan-market default rate falling to 1.0% and EIC’s look-through exposure to defaulted loans at just 36 basis points; management also expects floating-rate CLO debt income to benefit if rates remain elevated or rise.
  • Recurring portfolio cash flows weakened, primarily because of spread compression affecting CLO equity and the timing of semiannual payments. Management expects cash flows to recover over time, but the decline represents a near-term earnings pressure.
  • The company maintained its $0.11-per-share monthly distribution through the remainder of 2026, while preferred equity represented only 12% of assets versus a 25%–35% target range. Management plans to raise additional Series AA and AB preferred capital and may consider share repurchases, balancing the stock’s discount against limited trading liquidity.

Eagle Point Income Price Performance

Shares of EIC traded down $0.07 during trading hours on Friday, hitting $10.09. The company’s stock had a trading volume of 78,197 shares, compared to its average volume of 146,009. The business has a 50 day simple moving average of $10.09 and a two-hundred day simple moving average of $10.10. Eagle Point Income has a 52-week low of $9.17 and a 52-week high of $13.92.

Eagle Point Income Announces Dividend

The firm also recently disclosed a monthly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Friday, December 11th will be issued a dividend of $0.11 per share. The ex-dividend date of this dividend is Friday, December 11th. This represents a c) annualized dividend and a yield of 13.1%.

Wall Street Analyst Weigh In

Separately, Zacks Research raised shares of Eagle Point Income from a “strong sell” rating to a “hold” rating in a research report on Friday, May 15th. One equities research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $11.25.

Read Our Latest Analysis on Eagle Point Income

Hedge Funds Weigh In On Eagle Point Income

Several hedge funds have recently made changes to their positions in the stock. TCTC Holdings LLC lifted its holdings in Eagle Point Income by 38.5% during the 4th quarter. TCTC Holdings LLC now owns 3,600 shares of the company’s stock worth $41,000 after purchasing an additional 1,000 shares in the last quarter. Raymond James Financial Inc. grew its holdings in Eagle Point Income by 3.6% during the 3rd quarter. Raymond James Financial Inc. now owns 48,471 shares of the company’s stock valued at $652,000 after buying an additional 1,701 shares in the last quarter. Cetera Investment Advisers increased its position in shares of Eagle Point Income by 17.8% during the second quarter. Cetera Investment Advisers now owns 14,369 shares of the company’s stock valued at $196,000 after buying an additional 2,170 shares during the period. LPL Financial LLC increased its position in shares of Eagle Point Income by 17.5% during the fourth quarter. LPL Financial LLC now owns 39,761 shares of the company’s stock valued at $454,000 after buying an additional 5,918 shares during the period. Finally, Advisory Services Network LLC purchased a new stake in shares of Eagle Point Income in the third quarter worth about $89,000.

About Eagle Point Income

(Get Free Report)

Eagle Point Income Company (NYSE: EIC) is a closed-end management investment company that primarily invests in the equity and junior debt tranches of collateralized loan obligations (CLOs). Launched in 2019 and domiciled in Maryland, the company seeks to provide shareholders with high current income and the potential for capital appreciation by focusing on structured credit opportunities. Eagle Point Income maintains a diversified portfolio of CLO equity positions, targeting both seasoned and newly issued transactions across multiple risk profiles.

The company’s investment strategy centers on identifying mispriced or underfollowed CLO tranches, where it believes its team’s deep industry expertise can add value.

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