OFS Capital Reports Quarterly Earnings, Surpassing Estimates

OFS Capital (NASDAQ:OFS) announced its quarterly earnings on Thursday, revealing an earnings per share (EPS) of $0.27 for the quarter. This figure exceeded analysts' expectations, which estimated the EPS at $0.25, resulting in a positive surprise of $0.02. The investment management firm reported total revenue of $10.92 million for the quarter, slightly below the consensus estimate of $10.97 million. In terms of financial performance, OFS Capital achieved a return on equity of 11.19%, although it experienced a negative net margin of 2.29%. Comparatively, during the same quarter last year, the company reported an EPS of $0.40.

Stock Performance of OFS Capital

Following the earnings release, OFS Capital's stock saw a minor decline of 0.4%, trading down by $0.03 to reach $8.07. The mid-day trading saw a volume of 84,663 shares, which is considerably higher than the average volume of 33,854 shares. Currently, the company boasts a market capitalization of $108.14 million and has a price-to-earnings ratio of -89.66. The stock carries a beta of 1.78, indicating higher volatility compared to the broader market. OFS Capital's debt-to-equity ratio stands at 0.45, while both its current and quick ratios are at 0.04. Over the past year, the stock hit a low of $7.75 and a high of $12.41. The 50-day moving average price is $8.27, and the 200-day moving average price is $8.81.

Dividend Declaration by OFS Capital

The company has also announced a quarterly dividend, set to be paid on Tuesday, December 31st. Stockholders who are on record as of Friday, December 20th, will receive a dividend of $0.34 per share. This amounts to an annualized dividend of $1.36, representing a substantial dividend yield of 16.85%. The ex-dividend date is also scheduled for December 20th. Currently, OFS Capital has a dividend payout ratio of -1,510.94%, reflecting its unusual financial dynamics.

About OFS Capital Corporation

OFS Capital Corporation is recognized as a business development company that specializes in direct and fund investments, alongside additional acquisitions. It primarily provides flexible capital solutions through debt financing, complemented by minority equity investments tailored to meet the requirements of middle-market companies in the United States across various sectors.

OFS, Earnings, Stocks