Shares of Oxford Lane Capital Corp (OXLC) tumbled 5.03% in pre-market trading on Wednesday following the release of its fiscal first-quarter earnings report, which fell short of analyst expectations. The company, which specializes in collateralized loan obligation (CLO) investments, reported results that disappointed investors on multiple fronts.
Oxford Lane Capital announced quarterly earnings of $0.24 per share, missing the analyst consensus estimate of $0.26 by 7.69%. This represents a significant 41.46% decrease from earnings of $0.41 per share in the same period last year. The company's quarterly sales of $124 million also fell short, missing the analyst consensus estimate of $142 million by 12.68%, despite showing a 38.08% increase from the previous year's $89.8 million.
Adding to investor concerns, the company reported a net asset value of $4.12 per share as of June 30, which was below the $4.42 expected by analysts. In a separate announcement, Oxford Lane Capital's board approved a 1-for-5 reverse stock split, expected to occur in the quarter ending September 30. While this move is typically aimed at boosting the share price and improving the stock's marketability, it may have contributed to the negative sentiment in pre-market trading. The combination of missed earnings targets, lower-than-expected net asset value, and the reverse stock split announcement appears to have shaken investor confidence, resulting in the sharp pre-market decline.
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