Saratoga Investment Corporation (SAR) is set to release its Q2 earnings report on Tuesday, October 8th, after the market closes. Investors and analysts are anticipating this update closely, as the company’s financial performance has been closely watched over the last quarters.
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Expected Q2 Earnings Report from Saratoga Investment Corporation:
For the upcoming Q2 2024 earnings, the consensus estimate for earnings per share (EPS) is $0.95, reflecting a year-over-year decrease of 12%. However, Saratoga is expected to show modest revenue growth, with consensus revenue estimates at $36.95 million, representing a 4.1% year-over-year increase.
In the past two years, Saratoga has outperformed expectations, beating EPS and revenue estimates 63% of the time. Over the last three months, EPS estimates have been revised both upwards and downwards, with two upward and two downward revisions. Similarly, revenue estimates have seen four upward and two downward revisions.
Stock Target Advisor’s Analysis on Saratoga Investment Corporation:
Stock Target Advisor provides a slightly bearish outlook on Saratoga Investment Corp. Their analysis highlights four positive signals, such as superior return on assets and strong revenue growth, which are offset by five negative indicators, including poor earnings growth over the past five years and weak return on equity.
Currently, the stock is priced at $23.26, and analysts have set a 12-month target price of $24.25. Despite a slight increase in the stock’s value over the past year, its volatility, with a beta of 1.35, suggests that investors may need to consider potential risks.
Conclusion:
As Saratoga Investment Corporation gears up to report its Q2 earnings, investors are balancing optimism with caution. While the company has a track record of revenue growth and outperforming EPS estimates, concerns about overvaluation and inconsistent earnings growth remain.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
