Saratoga Investment ( NYSE: SAR ) shares are slipping 2.1% in Wednesday afterhours trading following worse than expected first-quarter results .
Specifically, adjusted net investment income of $0.53 per share at May 31 missed the average Wall Street estimate of $0.54 and down from $0.56 at May 31, 2021.
Q1 investment income of $18.68M also fell short of the $19.21M consensus but rose from $16.82M in Q1 of last year. The asset manager said the ongoing impact of rising interest rates will mostly be recognized in Q2.
Assets under management was $894.5M in Q1 vs. $677.8M in Q1 a year ago.
Net asset value of $28.69 per share ticked down from $38.70 in Q1 2021.
In a backdrop of "significant market volatility" triggered by persistently high inflation and tighter financial conditions, "we continue to focus on balance sheet and liquidity strength, while continuing to identify opportunities and challenges, and grow our asset base in high quality credits," said CEO and President Christian L. Oberbeck.
Conference call at 10:00 p.m. ET.
Towards the end of May, Saratoga Investment declared a quarterly dividend of $0.53 per share .
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Saratoga Investment stock slips after Q1 earnings fall short of consensus