OFS Capital (NASDAQ:OFS) Announces Earnings Results

Key Points

• OFS Capital reported a substantial earnings miss: quarterly EPS was $(0.86), compared with the consensus estimate of $0.07, while revenue of $5.94 million fell short of the $6.59 million forecast.
• The stock rose 0.2% to $4.01, but OFS Capital continues to show weak profitability, including a negative 62.24% net margin and a P/E ratio of -2.43.
• Analyst sentiment remains cautious: two analysts rate the stock “Hold” and one rates it “Sell,” resulting in a consensus “Reduce” rating despite an average price target of $7.00.

OFS Capital (NASDAQ:OFS - Get Free Report) released its quarterly earnings data on Thursday. The investment management company reported ($0.86) earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.93), FiscalAI reports. OFS Capital had a positive return on equity of 7.46% and a negative net margin of 62.24%. The business had revenue of $5.94 million for the quarter, compared to analyst estimates of $6.59 million.

OFS Capital Stock Up 0.2%

NASDAQ OFS traded up $0.01 on Thursday, reaching $4.01. The company had a trading volume of 58,602 shares, compared to its average volume of 78,474. The company has a quick ratio of 0.04, a current ratio of 0.04 and a debt-to-equity ratio of 0.33. The company's fifty day moving average is $3.83 and its 200 day moving average is $3.82. OFS Capital has a 52-week low of $2.72 and a 52-week high of $7.11. The stock has a market capitalization of $53.73 million, a P/E ratio of -2.43 and a beta of 0.86.

Analyst Ratings Changes

A number of brokerages have recently issued reports on OFS. Wall Street Zen upgraded shares of OFS Capital to a "hold" rating in a report on Saturday, October 10th. Zacks Research upgraded shares of OFS Capital to a "hold" rating in a report on Monday, October 5th. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of OFS Capital in a research report on Tuesday, September 1st. Two investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Reduce" and an average target price of $7.00.

OFS Capital Company Profile

OFS Capital Corporation NASDAQ: OFS is a business development company that provides financing to privately owned U.S. companies. The company primarily invests in lower middle-market businesses, which are generally companies that may have limited access to traditional bank financing or public capital markets.

OFS Capital's investment activities focus on providing secured loans, subordinated debt and, to a lesser extent, equity investments. Its financing may support acquisitions, recapitalizations, refinancing, growth initiatives and other corporate activities.

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