Capital Southwest Co. (NASDAQ:CSWC) Expected to Post Quarterly Sales of $20.62 Million

Equities analysts predict that Capital Southwest Co. (NASDAQ:CSWC) will report sales of $20.62 million for the current fiscal quarter, according to Zacks. Four analysts have provided estimates for Capital Southwest’s earnings. The lowest sales estimate is $20.21 million and the highest is $21.05 million. Capital Southwest posted sales of $19.04 million in the same quarter last year, which suggests a positive year-over-year growth rate of 8.3%. The business is expected to announce its next earnings report on Monday, February 7th.

On average, analysts expect that Capital Southwest will report full year sales of $80.41 million for the current fiscal year, with estimates ranging from $79.94 million to $80.65 million. For the next fiscal year, analysts expect that the business will post sales of $88.68 million, with estimates ranging from $86.40 million to $92.57 million. Zacks’ sales calculations are a mean average based on a survey of research firms that follow Capital Southwest.

Capital Southwest (NASDAQ:CSWC) last posted its earnings results on Sunday, October 31st. The asset manager reported $0.43 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.44 by ($0.01). Capital Southwest had a net margin of 48.21% and a return on equity of 10.09%. The firm had revenue of $20.30 million during the quarter, compared to analyst estimates of $19.70 million. During the same quarter in the prior year, the firm earned $0.45 earnings per share.

Several equities analysts recently issued reports on CSWC shares. JMP Securities reiterated a “buy” rating on shares of Capital Southwest in a research note on Wednesday, November 3rd. Oppenheimer started coverage on shares of Capital Southwest in a report on Friday, September 24th. They issued a “market perform” rating for the company. Raymond James boosted their price target on shares of Capital Southwest from $27.50 to $29.00 and gave the stock an “outperform” rating in a report on Wednesday, August 4th. Finally, Zacks Investment Research lowered shares of Capital Southwest from a “buy” rating to a “hold” rating in a report on Friday, November 5th. Three analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. According to data from MarketBeat, Capital Southwest currently has a consensus rating of “Buy” and an average target price of $26.75.

In other news, Director William R. Thomas III acquired 4,000 shares of the company’s stock in a transaction that occurred on Thursday, September 9th. The stock was purchased at an average price of $27.72 per share, with a total value of $110,880.00. Following the completion of the acquisition, the director now owns 6,759 shares of the company’s stock, valued at approximately $187,359.48. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Michael Scott Sarner acquired 3,355 shares of the company’s stock in a transaction that occurred on Tuesday, November 9th. The stock was purchased at an average cost of $26.83 per share, with a total value of $90,014.65. The disclosure for this purchase can be found here. Insiders have bought 8,436 shares of company stock valued at $228,729 in the last ninety days. Insiders own 7.46% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of CSWC. Two Sigma Investments LP lifted its position in Capital Southwest by 80.2% in the third quarter. Two Sigma Investments LP now owns 190,508 shares of the asset manager’s stock valued at $4,797,000 after buying an additional 84,817 shares during the last quarter. First Trust Advisors LP acquired a new position in Capital Southwest in the second quarter valued at about $1,632,000. Ameriprise Financial Inc. acquired a new position in Capital Southwest in the first quarter valued at about $1,352,000. Morgan Stanley lifted its position in Capital Southwest by 94.3% in the second quarter. Morgan Stanley now owns 121,634 shares of the asset manager’s stock valued at $2,825,000 after buying an additional 59,027 shares during the last quarter. Finally, Invesco Ltd. acquired a new position in Capital Southwest in the second quarter valued at about $1,028,000. 27.29% of the stock is currently owned by institutional investors.

Shares of CSWC traded down $0.18 during trading hours on Thursday, hitting $27.42. The stock had a trading volume of 38,142 shares, compared to its average volume of 154,306. The company has a debt-to-equity ratio of 0.61, a quick ratio of 0.18 and a current ratio of 0.18. The firm has a 50-day moving average price of $26.90 and a 200 day moving average price of $26.23. Capital Southwest has a fifty-two week low of $16.40 and a fifty-two week high of $28.41. The firm has a market capitalization of $640.01 million, a price-to-earnings ratio of 15.23, a PEG ratio of 15.16 and a beta of 1.21.

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 31st. Stockholders of record on Wednesday, December 15th will be issued a dividend of $0.47 per share. This is a positive change from Capital Southwest’s previous quarterly dividend of $0.44. The ex-dividend date of this dividend is Tuesday, December 14th. This represents a $1.88 dividend on an annualized basis and a dividend yield of 6.86%. Capital Southwest’s dividend payout ratio is presently 97.78%.

Capital Southwest Company Profile

Capital Southwest is a publicly–owned business development company with total assets of $496 million as of June 30, 2010. We provide patient capital to exceptional businesses with significant growth potential. As a public company, we have the flexibility to hold investments indefinitely, which has provided the management teams of our holdings a stable ownership platform since we were founded in 1961.

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Earnings History and Estimates for Capital Southwest (NASDAQ:CSWC)

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