An Overview of Capital Southwest's Earnings

Capital Southwest CSWC is preparing to release its quarterly earnings on Monday, 2024-10-28. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Capital Southwest to report an earnings per share (EPS) of $0.65.

Investors in Capital Southwest are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Overview of Past Earnings

The company's EPS missed by $0.02 in the last quarter, leading to a 3.44% increase in the share price on the following day.

Here's a look at Capital Southwest's past performance and the resulting price change:

Stock Performance

Shares of Capital Southwest were trading at $25.59 as of October 24. Over the last 52-week period, shares are up 21.39%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on Capital Southwest

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Capital Southwest.

The consensus rating for Capital Southwest is Neutral, based on 1 analyst ratings. With an average one-year price target of $24.0, there's a potential 6.21% downside.

Analyzing Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Virtus Inv, WisdomTree and Patria Investments, three key industry players, offering insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Underperform trajectory for Virtus Inv, with an average 1-year price target of $210.33, indicating a potential 721.92% upside.
• The consensus among analysts is an Buy trajectory for WisdomTree, with an average 1-year price target of $13.5, indicating a potential 47.25% downside.
• As per analysts' assessments, Patria Investments is favoring an Buy trajectory, with an average 1-year price target of $14.0, suggesting a potential 45.29% downside.

Analysis Summary for Peers

In the peer analysis summary, key metrics for Virtus Inv, WisdomTree and Patria Investments are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Capital Southwest ranks in the middle for revenue growth among its peers. It ranks at the bottom for gross profit. It is at the top for return on equity.

Get to Know Capital Southwest Better

Capital Southwest Corp is a U.S.-based investment company that specializes in providing customized financing to middle market companies across various industries. The company's investment objective is to produce attractive risk-adjusted returns by generating current income from debt investments and capital appreciation from equity and equity related investments. It focuses on providing flexible financing solutions through partnerships with business owners, management teams, and financial sponsors. The company's portfolio may include senior debt, second lien, and subordinated debt, preferred stocks, common stocks, and warrants. The primary source company's revenue comprises interest income and dividend income from investments made as well as management fees.

A Deep Dive into Capital Southwest's Financials

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Capital Southwest's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -21.37% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Capital Southwest's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 58.95%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Capital Southwest's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.83%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Capital Southwest's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.91%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.95, Capital Southwest adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Capital Southwest visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.