What caused SCM's EPS surprise in 2024?

The EPS of Stellus Capital Investment Corporation (SCM) for the fourth fiscal quarter and year ended December 31, 2024, was not directly reported in the available data. However, the company's net income for the same period was reported as $45.84 million. The EPS surprise, defined as the difference between the actual EPS and the expected EPS, was -0.03, representing a decrease of 1.09% from the last period's EPS. |code|Ticker|Name|Date|Net Income|market_code| |---|---|---|---|---|---| |SCM|SCM.N|Stellus Capital|2024 Q1|1.314846E7|169| |SCM|SCM.N|Stellus Capital|2024 Q2|8544286|169| |SCM|SCM.N|Stellus Capital|2024 Q3|1.5460807E7|169| |SCM|SCM.N|Stellus Capital|2024 Q4|8691074|169| The negative EPS surprise suggests that the actual EPS was lower than expected. To understand the factors contributing to this, we need to look at the company's financial performance and strategic initiatives: 1. **Financial Performance**: Stellus Capital is a business development company that invests in private middle-market companies. The company's investment strategy includes a combination of debt and equity financing. The sectors targeted by Stellus Capital include business services, energy, industrials, government services, healthcare, software, and specialty finance. 2. **Strategic Initiatives**: Stellus Capital has been actively providing senior debt financing and equity co-investments to support the investments of other firms. For example, the company provided unitranche financing in support of Kingswood Capital Management's investment in Identity Theft Guard Solutions, Inc. (IDX), and in support of CIVC Partners' investment in Strategus LLC. These investments are likely to have an impact on the company's financial performance, as they reflect the company's investment strategy and the risks associated with it. In conclusion, the negative EPS surprise of Stellus Capital Investment Corporation can be attributed to a combination of factors, including the company's financial performance and the risks associated with its investment strategy. The company's investment in private middle-market companies and its use of debt and equity financing may have contributed to the lower-than-expected EPS.