Oxford Lane Capital (NASDAQ:OXLC) Issues Earnings Results, Misses Estimates By $1.13 EPS

Oxford Lane Capital (NASDAQ:OXLC) posted its earnings results on Thursday. The investment management company reported $0.68 earnings per share for the quarter, missing analysts’ consensus estimates of $1.81 by ($1.13), Zacks reports. The business had revenue of $82.20 million for the quarter, compared to analysts’ expectations of $176.68 million.

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

• NAV and earnings declined: Net asset value per share fell to $9.95 from $10.74. GAAP net investment income slipped to $47.8 million ($0.49 per share), while Core Net Investment Income dropped to $66.4 million ($0.68 per share) from $93.4 million ($0.95) the prior quarter.
• The company recorded $43.8 million of unrealized depreciation and $22.6 million of net realized losses, resulting in an $18.5 million decrease in net assets from operations. CLO equity cash distribution yield at current cost declined to 12.4% from 16.3%.
• Loan prices improved and the reported loan default rate fell, but tight loan spreads continued to weigh on CLO equity economics; management also cited elevated out-of-court restructurings and weak CLO equity payments.
• Management said it sees potentially compelling CLO equity opportunities at depressed secondary-market prices and remained active in CLO investments, resets, and refinancings. It expects lower funding costs and longer reinvestment periods from these transactions, though future returns are uncertain.
• The board declared monthly distributions of $0.10 per share for January through March 2027. The company also redeemed $30 million of its 5.00% notes and plans to retire the remaining $40 million, while issuing $40 million of 8.25% term preferred stock.

Oxford Lane Capital Stock Up 1.5%

OXLC traded up $0.07 during midday trading on Friday, hitting $4.97. 1,033,482 shares of the company were exchanged, compared to its average volume of 1,385,857. The firm’s 50 day moving average price is $8.39 and its 200-day moving average price is $9.36. Oxford Lane Capital has a 1-year low of $4.62 and a 1-year high of $15.39. The firm has a market capitalization of $487.70 million, a P/E ratio of 0.72 and a beta of 0.68.

Oxford Lane Capital Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Wednesday, March 31st. Shareholders of record on Wednesday, March 17th will be issued a dividend of $0.10 per share. The ex-dividend date of this dividend is Wednesday, March 17th. This represents a $1.20 annualized dividend and a yield of 24.1%. Oxford Lane Capital’s payout ratio is presently 46.11%.

About Oxford Lane Capital

Oxford Lane Capital Corp. (NASDAQ: OXLC) is a closed-end management investment company focused primarily on investments in collateralized loan obligations (CLOs). CLOs are structured credit vehicles that typically hold portfolios of senior secured corporate loans and issue multiple classes of debt and equity securities with different levels of risk and return.

The company invests mainly in CLO equity and subordinated debt tranches, as well as selected senior secured loan and other corporate credit investments.