What's the outlook for CSWC's Q4 2025 earnings?
4/3/2025 03:24pm
**Capital Southwest Corp (CSWC) is likely to report strong Q4 2025 earnings**, based on the following points:
1. **Consistent Dividend Coverage**: CSWC has a track record of covering both regular and supplemental dividends with its pre-tax net investment income. This indicates a stable financial performance, which is a positive signal for earnings.
2. **Earnings Estimates**: The consensus estimate for Q4 2025 revenue is $50.16 million, with expected earnings per share (EPS) of $0.59. This is a modest increase from the previous quarter's revenue and EPS estimates, suggesting a positive outlook.
3. **Dividend Declarations**: The company declared a total of $0.64 per share in dividends for Q4 FY25, which it covered with its investment income. This proactive approach to dividends can be a sign of confidence in the company's financial health and earnings.
4. **Historical Performance**: CSWC has beaten EPS estimates 75% of the time over the past 12 months. This historical trend suggests that the company's earnings are likely to be in line with or exceed expectations.
5. **Market Sentiment**: B. Riley, an analyst, had previously dropped his Q2 2025 EPS estimates but maintained a positive outlook. Although this is for a different quarter, it could reflect broader positive sentiment towards the company's performance.
In conclusion, the outlook for CSWC's Q4 2025 earnings appears positive, with the company likely to report strong revenue and earnings, supported by its consistent dividend coverage and historical performance trends.