Capital Southwest(US:CSWC) ZACKSยท2025-05-14 22:55Group 1: Earnings Performance - Capital Southwest (CSWC) reported quarterly earnings of $0.54 per share, missing the Zacks Consensus Estimate of $0.62 per share, and down from $0.66 per share a year ago, representing an earnings surprise of -12.90% [1] - The company posted revenues of $52.41 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.43%, compared to year-ago revenues of $46.43 million [2] - Over the last four quarters, the company has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - Capital Southwest shares have lost about 3.2% since the beginning of the year, while the S&P 500 has gained 0.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.60 on revenues of $55.41 million, and $2.43 on revenues of $227.37 million for the current fiscal year [7] Group 3: Industry Context - The Financial - Investment Management industry, to which Capital Southwest belongs, is currently in the bottom 11% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5] - The estimate revisions trend for Capital Southwest is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expectations of outperforming the market in the near future [6]