Capital Southwest ( NASDAQ: CSWC ) stock is advancing 2.3% in Monday afterhours trading after its fiscal Q1 earnings topped Wall Street expectations as its portfolio kept performing well and deal activity was strong.
The asset manager's board of directors on July 28 approved a share buyback program authorizing the company to repurchase up to $20M of its outstanding shares of common stock in the open market at certain thresholds below its net asset value.
Net investment income of $0.49 per share at June 30 surpassed the average analyst estimate of $0.48 and rose from $0.43 in the year-ago quarter.
Q1 total investment income of $22.54M also topped the consensus of $22.40M and climbed from $18.58M in Q1 of last year, mostly driven by an increase in average debt investments outstanding and a boost in prepayment fees received from portfolio companies.
Q1 net asset value of $16.54 vs. $16.86 at March 31.
Q1 interest expense came in at $5.5M, up from $4.9M in Q4 2022, primarily due to an increase in average debt outstanding and an increase in the weighted average interest rate on debt.
During the first quarter, the Capital Southwest ( CSWC ) originated $148.3M in new commitments, consisting of investments in six new portfolio companies totaling $139.0M and add-on commitments in eight portfolio companies amounting to $9.3M.
Conference call on August 2 at 11:00 a.m. ET.
In May, Capital Southwest increased its senior credit facility to $380M .
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Capital Southwest fiscal Q1 earnings helped by portfolio, deal activity