Capital Southwest (CSWC) Q3 earnings report preview: what to look for
Business development company Capital Southwest (NASDAQ:CSWC) will be reporting earnings this Monday afternoon. Here’s what to look for.
Capital Southwest met analysts’ revenue expectations last quarter, reporting revenues of $61.05 million, up 9.1% year on year. It was a satisfactory quarter for the company, with a beat 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 15.3% year on year, slowing from the 16.9% 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 financial services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. PROG delivered year-on-year revenue growth of 25.6%, beating analysts’ expectations by 7.8%, and Hercules Capital reported revenues up 1.5%, falling short of estimates by 2.3%. PROG traded up 13% following the results while Hercules Capital was down 1.8%.
Read our full analysis of PROG’s results here and Hercules Capital’s results here.
There has been positive sentiment among investors in the financial services segment, with share prices up 4.1% 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 $25.08 (compared to the current share price of $23.33).
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