OFS Capital Reports Quarterly Earnings, Surpassing Estimates

OFS Capital (NASDAQ:OFS) announced its quarterly earnings results on Thursday, revealing an earnings per share (EPS) of $0.27 for the quarter. This figure surpassed the consensus estimate of $0.25 by $0.02, as reported by Zacks. In terms of revenue, the firm generated $10.92 million, which slightly fell short of analysts' expectations of $10.97 million. Notably, the company achieved a return on equity of 11.19%, while its net margin was recorded at -2.29%. Comparing this quarter's results with the same period last year, OFS Capital had reported $0.40 EPS, indicating a decline in earnings year-over-year.

OFS Capital Stock Performance

On the trading floor, OFS Capital's stock saw a minor decline of 0.4%, dropping by $0.03 to reach $8.07 during midday trading on Friday. The total trading volume for the day stood at 84,663 shares, which is considerably higher than the company's average trading volume of 33,854. As for its market capitalization, it is currently valued at $108.14 million. The stock has a price-to-earnings ratio of -89.66 and a beta of 1.78. Financially, the company holds a debt-to-equity ratio of 0.45, while both its current ratio and quick ratio are reported at 0.04. Over the past year, OFS Capital's stock has fluctuated between a low of $7.75 and a peak of $12.41, with current moving averages of $8.27 for the past 50 days and $8.81 for the last 200 days.

Dividend Announcement by OFS Capital

Additionally, OFS Capital declared a quarterly dividend, which is set to be paid on Tuesday, December 31st. Shareholders listed on the record as of Friday, December 20th, will receive a dividend of $0.34 per share, translating to an annualized dividend of $1.36 and an impressive dividend yield of 16.85%. The ex-dividend date is also slated for Friday, December 20th. At present, the company's dividend payout ratio stands dramatically high at -1,510.94%, indicating a substantial gap in dividend sustainability.

Understanding OFS Capital

OFS Capital Corporation operates as a business development company that specializes in providing direct and fund investments as well as undertaking add-on acquisitions. The company primarily offers flexible capital solutions through debt financing, along with minority equity investments, to meet the needs of middle-market companies in the United States across a diverse array of industries.

OFS, Earnings, Dividend