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Capital Southwest Corp. (CSWC)
NASDAQ:CSWC
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Earnings Data
Report Date
Feb 03, 2025TBA Not Confirmed
Period Ending
2025 (Q3)Consensus EPS Forecast
$0.62Last Year’s EPS
$0.7Same Quarter Last Year
Based on 5 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Oct 28, 2024
|% Change Since: -15.80%
|Next Earnings Date:Feb 03, 2025
Earnings Call Sentiment|Positive
The earnings call presented a strong performance with solid dividend coverage, increased investment activity, and robust balance sheet liquidity. However, challenges such as tighter loan pricing and nonaccrual loans were notable concerns.Company Guidance
During the Capital Southwest second quarter fiscal year 2025 earnings call, several key metrics and guidance were highlighted. The company reported a pretax net investment income of $0.64 per share, which fully covered the regular dividend of $0.58 per share and the supplemental dividend of $0.06 per share. Looking ahead to the December quarter, the Board declared a regular dividend of $0.58 per share and a supplemental dividend of $0.05 per share, amounting to total dividends of $0.63 per share. The company noted a healthy deal flow in the lower middle market, with current underwriting showing loan-to-value levels of 35% to 50% and leverage levels of around 3x debt to EBITDA. Significant portfolio activity included $89.8 million in new commitments, with add-on financing remaining an attractive source of originations. The portfolio's weighted average yield was reported at 12.9%, and the credit portfolio comprised 98% first lien senior secured loans. The balance sheet liquidity remained robust, with approximately $475 million in available cash and undrawn commitments, supporting a regulatory leverage ratio of 0.8:1. The company expressed confidence in sustaining dividend growth, supported by a current undistributed taxable income balance of $0.64 per share and an unrealized appreciation of $0.68 per share in the equity portfolio.Dividend Coverage and Growth
Pretax net investment income of $0.64 per share fully covered a regular dividend of $0.58 per share and a supplemental dividend of $0.06 per share. The Board declared a total dividend of $0.63 per share for the December quarter.
Strong Portfolio and Investment Activity
Generated $89.8 million in new commitments, including $72 million in first lien senior secured debt for new portfolio companies. Portfolio growth included 11 existing portfolio company add-ons.
Solid IRR on Exits
Four debt prepayments generated $45.2 million in proceeds with a weighted average realized IRR of 14.5%.
Increased Credit Facility
Increased ING-led corporate credit facility to $485 million from $460 million with a new bank lender.
Portfolio Health Metrics
93.5% of the portfolio rated in top two categories with a strong cash flow coverage of debt service obligations at 3.4x.
Robust Balance Sheet Liquidity
Approximately $475 million in cash and undrawn leverage commitments, supporting a flexible capital structure.
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CSWC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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CSWC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Oct 28, 2024 | $25.00 | $23.80 | -4.80% |
| Aug 05, 2024 | $22.32 | $23.09 | +3.45% |
| May 14, 2024 | $25.15 | $24.40 | -2.98% |
| Jan 29, 2024 | $22.80 | $23.13 | +1.45% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Capital Southwest Corp. (CSWC) report earnings?
Capital Southwest Corp. (CSWC) is schdueled to report earning on Feb 03, 2025, TBA Not Confirmed.
What is Capital Southwest Corp. (CSWC) earnings time?
Capital Southwest Corp. (CSWC) earnings time is at Feb 03, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is CSWC EPS forecast?
CSWC EPS forecast for the fiscal quarter 2025 (Q3) is $0.62.
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