Oxford Square Capital (NASDAQ:OXSQ) Posts Earnings Results, Misses Expectations By $0.01 EPS

Oxford Square Capital (NASDAQ:OXSQ) announced its earnings results on Friday. The company reported $0.04 earnings per share for the quarter, missing the consensus estimate of $0.05 by ($0.01), Zacks reports. Oxford Square Capital had a positive return on equity of 14.41% and a negative net margin of 93.65%.

Here are the key takeaways from Oxford Square Capital’s conference call:

• Negative Sentiment: Net investment income declined to approximately $4.9 million, or $0.04 per share, from $5.1 million, or $0.05 per share, in the prior quarter, while NAV per share fell to $1.21 from $1.29.
• Negative Sentiment: The board declared monthly distributions of $0.015 per share for January through March 2027, below the prior quarterly distribution rate, reflecting management’s assessment of current earnings power and its goal of further deleveraging.
• Positive Sentiment: Management has intentionally shifted the portfolio toward first-lien secured debt and reduced leverage, which stood at 1.07x debt-to-equity at quarter-end and was lower still after additional intra-quarter debt repayment.
• Neutral Sentiment: The loan market improved modestly overall, with average prices rising and the index default rate declining to 0.55%; however, defaults including liability-management exercises remained elevated at 2.97%, and the distress ratio increased to 7.05%.
• Positive Sentiment: Oxford Square raised approximately $19.4 million through its at-the-market offering and plans to use continued portfolio rotation and available capital to pursue attractive secondary-market CLO equity and loan opportunities.

Oxford Square Capital Stock Performance

Shares of NASDAQ:OXSQ traded down $0.21 during trading on Friday, reaching $0.92. 9,181,395 shares of the stock were exchanged, compared to its average volume of 1,686,226. Oxford Square Capital has a 12-month low of $0.78 and a 12-month high of $2.05. The firm’s 50-day moving average price is $1.30 and its 200 day moving average price is $1.56. The firm has a market cap of $98.66 million, a price-to-earnings ratio of -2.04 and a beta of 0.33.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on OXSQ shares. Weiss Ratings lowered shares of Oxford Square Capital from a “sell (d+)” rating to a “sell (d)” rating in a research report on Thursday, September 10th. Wall Street Zen raised Oxford Square Capital from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. One research analyst has rated the stock with a Sell rating. According to data from MarketBeat.com, the stock presently has a consensus rating of “Sell”.

Oxford Square Capital Company Profile

Oxford Square Capital Corp. (NASDAQ: OXSQ) is a business development company that invests primarily in debt securities and other investments related to middle-market companies. The company seeks to generate current income and, to a lesser extent, capital appreciation through a portfolio that may include senior secured loans, subordinated debt, and equity investments.

Oxford Square also invests in collateralized loan obligations (CLOs), which are securities backed primarily by pools of corporate loans.