## Capital Southwest (CSWC) Earnings Preview: What to Expect on October 28th
Capital Southwest Corp. (CSWC), a U.S.-based investment company specializing in providing customized financing to middle market companies, is gearing up to release its quarterly earnings on Monday, October 28th. Investors are eagerly awaiting the announcement, hoping for positive news and strong future guidance.
Analyst Expectations and Past Performance
Analysts are expecting Capital Southwest to report earnings per share (EPS) of $0.65 for the quarter. While this represents a potential growth opportunity, investors should note that stock prices can be heavily influenced by future projections rather than just past performance. In the last quarter, the company’s EPS missed by $0.02, resulting in a 3.44% increase in the share price the following day. Here’s a look at Capital Southwest’s past performance and the resulting price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—|
| Q1 2025 | 0.65 | 0.63 | 3.0% |
| Q4 2024 | 0.66 | 0.66 | -3.0% |
| Q3 2024 | 0.66 | 0.70 | 1.0% |
| Q2 2024 | 0.65 | 0.69 | 3.0% |
As of October 24th, shares of Capital Southwest were trading at $25.59. Over the last 52 weeks, shares are up 21.39%. These generally positive returns suggest that long-term shareholders are likely optimistic going into this earnings release.
Analyst Views and Industry Comparisons
Understanding market sentiment and expectations is crucial for investors. The consensus rating for Capital Southwest is currently Neutral, based on 1 analyst rating. The average one-year price target is $24.0, indicating a potential 6.21% downside.
To gain further insights, let’s examine the analyst ratings and average one-year price targets for three key industry players: Virtus Inv, WisdomTree, and Patria Investments:
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Virtus Inv:
Underperform, with an average 1-year price target of $210.33, indicating a potential 721.92% upside.*
WisdomTree:
Buy, with an average 1-year price target of $13.5, indicating a potential 47.25% downside.*
Patria Investments:
Buy, with an average 1-year price target of $14.0, suggesting a potential 45.29% downside.Key Financial Metrics and Analysis
Capital Southwest’s financial performance provides valuable insights into its overall health and potential for growth. Let’s delve into some key metrics:
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Market Capitalization:
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.*
Revenue Growth:
Examining Capital Southwest’s financials over 3 months reveals challenges. As of June 30th, 2024, the company experienced a decline of approximately -21.37% in revenue growth, reflecting a decrease in top-line earnings. This growth rate is lower than the average among peers in the Financials sector.*
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.Conclusion
Capital Southwest’s upcoming earnings release will be a pivotal event for investors. The company’s recent performance, analyst sentiments, and key financial metrics paint a mixed picture, highlighting both potential growth opportunities and challenges. As investors analyze the upcoming earnings announcement, it is crucial to consider the company’s historical performance, industry trends, and financial health to make informed decisions. To track all earnings releases for Capital Southwest, visit their earnings calendar on our site.