DALLAS, Nov. 03, 2025 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest,” “CSWC” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced its financial results for the second fiscal quarter ended September 30, 2025. Second Quarter Fiscal Year 2026 Financial Highlights Total Investment Portfolio: $1.9 billion Credit Portfolio of $ ...

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Capital Southwest (CSWC) despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - CSWC is expected to report quarterly earnings of $0.58 per share, reflecting a year-over-year decrease of 12.1%, while revenues are projected to be $55.74 million, an increase of 14.4% from the previous year [3]. - The consensus EPS estimate has been revised down by 0.84% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that CSWC has a negative Earnings ESP of -5.71%, suggesting a bearish outlook from analysts [12]. - The stock currently holds a Zacks Rank of 4, making it challenging to predict an earnings beat [12]. Historical Performance - In the last reported quarter, CSWC met the expected earnings of $0.59 per share, resulting in no surprise [13]. - Over the past four quarters, CSWC has only surpassed consensus EPS estimates once [14]. Industry Comparison - In the Zacks Financial - Investment Management industry, T. Rowe Price (TROW) is expected to report earnings of $2.49 per share, a year-over-year decline of 3.1%, with revenues anticipated at $1.86 billion, up 3.9% [18]. - T. Rowe's consensus EPS estimate has been revised up by 3.4% in the last 30 days, but it currently has an Earnings ESP of 0% [19].

Core Viewpoint - Monthly dividends are preferred over quarterly payouts due to more frequent cash flow and often higher annual yields, with examples yielding between 8% and 19.8% [2] Group 1: Monthly Dividend Stocks - Monthly dividend stocks can provide substantial annual income, with potential earnings ranging from $40,000 to $99,000 on a $500,000 investment [2] - The article discusses four specific monthly dividend payers, highlighting their unique characteristics and performance [2] Group 2: Sabine Royalty Trust (SBR) - Sabine Royalty Trust is a passive income vehicle that pays distributions from income generated by natural resources, primarily from the Permian Basin [3] - The trust has no debt and has outperformed the broader energy sector, but it is sensitive to commodity prices and has variable distributions [4][7] - SBR's asset base is fixed, and it may terminate if gross revenues fall below $2 million for two consecutive years or if unitholders vote for closure [6] Group 3: Capital Southwest Corp. (CSWC) - Capital Southwest Corp. is a business development company that provides capital to lower middle market firms, with a portfolio of 122 firms [8] - The company has a high percentage of floating-rate debt, which can be advantageous in rising rate environments, and it has outperformed its peers and the S&P 500 [10] - CSWC's dividends are well-covered, and it pays monthly, with a portion of the yield coming from supplemental dividends [10] Group 4: PennantPark Floating Rate Capital (PFLT) - PennantPark Floating Rate Capital targets midsized companies and invests primarily through first-lien floating-rate debt [12][14] - The company has faced tight dividend coverage, with the possibility of a dividend reduction, but management is optimistic about growth through joint ventures [14] Group 5: Orchid Island Capital (ORC) - Orchid Island Capital is a mortgage REIT that deals in agency residential mortgage-backed securities, currently offering a yield close to 20% [16] - The company has experienced significant price declines since its IPO, leading to a reverse stock split, and has a history of reducing dividends [18][19]

Group 1 - The article provides a market analysis covering several companies including Capital Southwest Corporation, Orchid Island Capital Inc, Sabine Royalty Trust, and PennantPark Floating Rate Capital Ltd [1] Group 2 - The analysis highlights the investment opportunities and risks associated with the mentioned companies, indicating a focus on their financial performance and market positioning [1]

[FORM 8-K Filing Details](index=1&type=section&id=FORM%208-K%20Filing%20Details) This section outlines fundamental Form 8-K filing information, including registrant details and report date [Registrant and Filing Information](index=1&type=section&id=Registrant%20and%20Filing%20Information) This section provides the foundational details of the Form 8-K filing, identifying Capital Southwest Corporation as the registrant, its incorporation state, address, and the date of the report - Registrant: **CAPITAL SOUTHWEST CORPORATION**[1](index=1&type=chunk) - Date of report (Date of earliest event reported): **October 15, 2025**[1](index=1&type=chunk) - Jurisdiction of Incorporation: **Texas**[1](index=1&type=chunk) [Securities Information](index=1&type=section&id=Securities%20Information) This part details the securities registered by the company, specifically its Common Stock, and confirms its status regarding emerging growth company provisions Registered Securities | Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | | :------------------ | :---------------- | :---------------------------------------- | | Common Stock, $0.25 par value per share | CSWC | The Nasdaq Global Select Market | - The registrant is **not an emerging growth company**[3](index=3&type=chunk) [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) This section details the announcement of preliminary financial results for the fiscal quarter ended September 30, 2025 [Announcement of Preliminary Financial Results](index=2&type=section&id=Announcement%20of%20Preliminary%20Financial%20Results) Capital Southwest Corporation announced preliminary estimates for its financial condition and results of operations for the fiscal quarter ended September 30, 2025, through a press release issued on October 15, 2025, which is incorporated by reference - On **October 15, 2025**, Capital Southwest Corporation issued a press release announcing certain preliminary estimates of its financial condition and results of operations[4](index=4&type=chunk) - The preliminary estimates are for the fiscal quarter ended **September 30, 2025**[4](index=4&type=chunk) - A copy of the press release is attached as Exhibit 99.1 and is incorporated herein by reference[4](index=4&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists all exhibits accompanying the Form 8-K filing, including the press release and interactive data file [Exhibits Filed](index=2&type=section&id=Exhibits%20Filed) This section lists the exhibits included with the Form 8-K filing, which primarily consist of the press release detailing the preliminary financial results and the interactive data file List of Exhibits | Exhibit No. | Description | | :------------ | :---------------------------------------------------------- | | 99.1 | Press Release issued by Capital Southwest Corporation on October 15, 2025 | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [SIGNATURES](index=3&type=section&id=SIGNATURES) This section confirms the official signing and authorization of the Form 8-K report by the designated officer [Authorization and Signatory](index=3&type=section&id=Authorization%20and%20Signatory) The report confirms that it was duly signed on behalf of the registrant by an authorized officer, Michael S. Sarner, President and Chief Executive Officer, on October 15, 2025 - The report was signed on **October 15, 2025**[9](index=9&type=chunk) - Signed by **Michael S. Sarner, President and Chief Executive Officer**[9](index=9&type=chunk)

Core Insights - Capital Southwest Corporation has announced preliminary operating results for the second quarter of its 2026 fiscal year, indicating a focus on providing flexible financing solutions for middle market businesses [1][6] Financial Performance - The preliminary estimate of pre-tax net investment income for the second quarter of 2026 is projected to be between $0.60 and $0.61 per share [2] - The estimated net investment income for the same period is expected to be in the range of $0.56 to $0.57 per share [2] - The preliminary estimate of net asset value per share as of September 30, 2025, is between $16.60 and $16.64 [3] - Non-accruals as a percentage of the total investment portfolio are estimated at 2.6% at cost and 1.0% at fair value [3] Upcoming Events - Capital Southwest will release finalized second quarter 2026 results on November 3, 2025, after market close [4] - A live webcast is scheduled for November 4, 2025, at 11:00 a.m. Eastern Time for investors to participate [4][5] Company Overview - Capital Southwest is an internally managed business development company based in Dallas, Texas, with approximately $1.8 billion in investments at fair value as of June 30, 2025 [6] - The company focuses on middle market lending, supporting acquisitions and growth with investments ranging from $5 million to $50 million across various capital structures [6]

Core Insights - The equity market serves as a significant mechanism for wealth creation or destruction over the long term through daily price fluctuations [1] Group 1: Investment Focus - Pacifica Yield aims to create long-term wealth by focusing on undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Group 1 - Crude Value Insights provides an investment service and community focused on the oil and natural gas sectors, emphasizing cash flow and companies that generate it [1] - The service offers subscribers access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Group 2 - A two-week free trial is available for new subscribers, promoting engagement with the oil and gas market [2]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest in AI technologies now [1][13] - The energy demands of AI technologies are highlighted, with data centers consuming as much energy as small cities, leading to concerns about power grid strain and rising electricity prices [2][3] Investment Opportunity - A specific company is presented as a unique investment opportunity, positioned to benefit from the increasing energy demands of AI, owning critical energy infrastructure assets [3][6][7] - This company is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and poised to capitalize on the onshoring trend driven by tariffs [5][6] Financial Position - The company is noted for being debt-free and holding a significant cash reserve, equating to nearly one-third of its market capitalization, which positions it favorably compared to other energy firms burdened with debt [8][10] - It also has a substantial equity stake in another AI-related company, providing indirect exposure to multiple growth engines in the AI sector [9][10] Market Trends - The article discusses the broader trends of AI infrastructure supercycles, the onshoring boom, and a surge in U.S. LNG exports, indicating a favorable environment for the company's growth [14] - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, reinforcing the potential for investment in AI-related companies [12] Conclusion - The narrative concludes with a strong call to action for investors to engage in the AI market, emphasizing the potential for significant returns within a 12 to 24-month timeframe [15][19]

Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at various firms [1] - He is a Professional Engineer and Project Management Professional, holding degrees in Civil Engineering & Mathematics and a Masters in Engineering with a focus on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content [2] - The service includes an active chat room for investors to share insights and strategies [2]