Oxford Lane Capital Corp (NASDAQ:OXLC) saw its stock price plummet 5.03% in pre-market trading on Wednesday following disappointing quarterly results and the announcement of a reverse stock split.
The company reported fiscal Q1 core net investment income of $0.24 per share, falling short of the analyst consensus estimate of $0.26. This represents a significant 41.46% decrease from the $0.41 per share reported in the same period last year. Additionally, quarterly sales came in at $124 million, missing the analyst estimate of $142 million by 12.68%, despite showing a 38.08% increase year-over-year.
Adding to investor concerns, Oxford Lane Capital's net asset value as of June 30 was $4.12 per share, below the $4.42 expected by analysts. In a surprising move, the company's board also approved a 1-for-5 reverse stock split, expected to occur in the quarter ending September 30. This combination of underwhelming financial results and the upcoming stock consolidation appears to have shaken investor confidence, leading to the sharp pre-market decline.
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