Capital Southwest (NASDAQ:CSWC) Announces Q2 2027 Earnings Guidance

Key Points

• Capital Southwest guided for Q2 2027 EPS of $0.560–$0.570, above the analyst consensus estimate of $0.550.
• The company reported prior-quarter EPS of $0.58, beating estimates by $0.02, while revenue of $61.05 million was slightly below expectations.
• Capital Southwest declared a monthly dividend of $0.1934 per share, equating to an annualized $2.32 payout and a 10.4% yield; analysts maintain a consensus “Moderate Buy” rating with a $24.10 average price target.

Capital Southwest (NASDAQ:CSWC - Get Free Report) issued an update on its second quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 0.560-0.570 for the period, compared to the consensus estimate of 0.550.

Capital Southwest Price Performance

Shares of NASDAQ:CSWC traded down $0.02 during mid-day trading on Wednesday, reaching $22.37. The stock had a trading volume of 491,811 shares, compared to its average volume of 645,340. The business's 50 day moving average price is $24.05 and its 200 day moving average price is $23.74. Capital Southwest has a 1 year low of $19.91 and a 1 year high of $25.75. The company has a market cap of $1.43 billion, a P/E ratio of 12.36 and a beta of 0.71. The company has a current ratio of 0.17, a quick ratio of 0.17 and a debt-to-equity ratio of 0.62.

Capital Southwest (NASDAQ:CSWC - Get Free Report) last released its quarterly earnings results on Monday, August 3rd. The asset manager reported $0.58 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.02. The business had revenue of $61.05 million during the quarter, compared to analysts' expectations of $61.22 million. Capital Southwest had a return on equity of 13.88% and a net margin of 46.68%. During the same quarter last year, the business posted $0.61 EPS. Research analysts expect that Capital Southwest will post 2.27 EPS for the current fiscal year.

Capital Southwest Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 15th will be given a $0.1934 dividend. This represents a $2.32 annualized dividend and a yield of 10.4%. The ex-dividend date is Tuesday, December 15th. Capital Southwest's payout ratio is currently 128.18%.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the stock. Citizens Jmp upped their price target on shares of Capital Southwest from $25.00 to $26.00 and gave the company a "market outperform" rating in a research note on Wednesday, August 5th. B. Riley Financial increased their price objective on shares of Capital Southwest from $24.50 to $25.50 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Weiss Ratings cut shares of Capital Southwest from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday, October 13th. Citigroup restated a "market outperform" rating on shares of Capital Southwest in a report on Wednesday, August 5th. Finally, UBS Group upped their target price on shares of Capital Southwest from $23.50 to $24.00 and gave the company a "neutral" rating in a research report on Friday, October 9th. Six equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $24.10.

Insider Buying and Selling

In other news, Director William Thomas, III acquired 2,170 shares of the business's stock in a transaction on Thursday, October 1st. The shares were acquired at an average price of $23.04 per share, for a total transaction of $49,996.80. Following the completion of the transaction, the director directly owned 22,842 shares of the company's stock, valued at approximately $526,279.68. The trade was a 10.50% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 2.70% of the stock is owned by insiders.

Capital Southwest Company Profile

Capital Southwest Corporation NASDAQ: CSWC is a business development company that provides financing to middle-market and lower-middle-market businesses in the United States. The company primarily invests in privately held companies that may require capital to support growth, acquisitions, recapitalizations, ownership transitions, or other strategic initiatives.

Its investment portfolio generally consists of senior secured loans, including first-lien and second-lien debt, as well as subordinated debt and equity investments.

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