Market Overview

Earnings Outlook For Capital Southwest


Capital Southwest (NASDAQ: CSWC) unveils its next round of earnings this Friday, October 30. Here is Benzinga's everything-that-matters guide for the earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on Capital Southwest management projections, analysts predict EPS of $0.39 on revenue of $15.75 million. In the same quarter last year, Capital Southwest posted EPS of $0.38 on sales of $15.22 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 2.63% increase in the company's earnings. Sales would be up 3.5% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2019
EPS Estimate 0.38 0.39 0.38 0.42
EPS Actual 0.38 0.37 0.39 0.38
Revenue Estimate 15.49 M 15.63 M 15.71 M 15.33 M
Revenue Actual 15.16 M 15.04 M 15.98 M 15.22 M

Stock Performance

Shares of Capital Southwest were trading at $13.28 as of October 28. Over the last 52-week period, shares are down 41.06%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Capital Southwest is scheduled to hold the call at 11:00:00 ET and can be accessed here.


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Posted-In: Earnings