Capital Southwest (CSWC) Reports Q2: Everything You Need To Know Ahead Of Earnings

Business development company Capital Southwest (NASDAQ:CSWC) will be announcing earnings results this Monday afternoon. Here’s what to expect.

Capital Southwest missed analysts’ revenue expectations last quarter, reporting revenues of $57.77 million, up 10.2% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates.

Is Capital Southwest a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Capital Southwest’s revenue to grow 9.1% year on year, in line with the 8.9% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Capital Southwest has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Capital Southwest’s peers in the specialty finance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Farmer Mac delivered year-on-year revenue growth of 25.6%, beating analysts’ expectations by 4%, and PROG reported revenues up 22.3%, topping estimates by 0.8%. Farmer Mac traded up 3.5% following the results while PROG was down 4.4%.

Read our full analysis of Farmer Mac’s results here and PROG’s results here.

There has been positive sentiment among investors in the specialty finance segment, with share prices up 2.4% on average over the last month. Capital Southwest’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $24.90 (compared to the current share price of $23.60).

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