Saratoga Investment (SAR) Lags Q4 Earnings and Revenue Estimates

Company Performance - Saratoga Investment reported quarterly earnings of $0.56 per share, missing the Zacks Consensus Estimate of $0.77 per share, and down from $0.94 per share a year ago, representing an earnings surprise of -27.27% [1] - The company posted revenues of $31.3 million for the quarter ended February 2025, missing the Zacks Consensus Estimate by 7.29%, and down from $37.23 million year-over-year [2] - Over the last four quarters, Saratoga Investment has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Market Performance - Saratoga Investment shares have increased by approximately 3.9% since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.79 on revenues of $33.7 million, and for the current fiscal year, it is $3.15 on revenues of $137.08 million [7] Industry Outlook - The Financial - SBIC & Commercial Industry, to which Saratoga Investment belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact the stock's performance [5][6]