Saratoga Investment Corp. experienced a significant after-hours plunge of 5.02% on Tuesday, following the release of its fiscal first quarter 2027 financial results.
The business development company reported a net asset value (NAV) per share decline of 4.9% to $23.23, primarily driven by $15.2 million in unrealized depreciation on its investment portfolio. Key contributors to the markdowns included specific investments such as Pepper Palace, which was written down to zero, along with Exigo and Chronus.
Financial metrics for the quarter fell short of expectations, with adjusted net investment income dropping 25.14% year-over-year to $7.59 million. The company reported adjusted earnings per share of $0.47, missing the consensus estimate of $0.55, while total investment income of $30.78 million also came in below analyst expectations. The reported EPS was a negative $0.42, reflecting the challenging quarter for the company amid a complex macroeconomic environment.
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