NYSE$SAR

Saratoga Investment Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Announced fiscal first quarter 2023 financial results.

Saratoga Investment Corp. reported financial results for its 2023 fiscal first quarter, which coincided with significant market volatility. The company focused on balance sheet and liquidity strength, raised $97.5 million of 6.00% baby bonds, and maintained a high credit quality portfolio. Originations totaled $97 million, with $10 million of repayments.

  • Raised $97.5 million of 6.00% baby bonds to strengthen capital structure and liquidity.
  • Originations in fiscal first quarter 2023 totaled $97 million, with $10 million of repayments.
  • Credit quality remained high, with 95.0% of credits rated in the highest category.
  • Declared a quarterly dividend of $0.53 per share for the quarter ended May 31, 2022.

Headline financials

Total Revenue

$18.7M

No prior period
EPS (adj)

$0.53

No prior period
Net Investment Income Yield

9.1%

No prior period
Assets Under Management

$895M

No prior period
NAV per share

$28.69

No prior period
Net Income

$8M

No prior period
Cash & Equivalents

$102M

No prior period
Total Assets

$895M

No prior period

Revenue & EPS history

Saratoga Investment · Revenue · Quarterly

$18.7M

Q1 2023
Beat estimate in 0 of 1 quarters(0%)
ActualEstimate

Forward guidance

Saratoga Investment is well positioned for potential future economic opportunities and challenges, with focus on balance sheet and liquidity strength. The company expects capital deployment to be accretive to earnings. They remain confident in their experienced management team, high underwriting standards and ability to steadily grow portfolio size and maintain quality and investment performance over the long-term.

Tailwinds

  • Expects capital deployment to be accretive to earnings.
  • Believes portfolio is well structured for future market conditions and uncertainty.
  • Should be a significant future beneficiary of the recent and continuing rising rates.
  • Confident in experienced management team.
  • Confident in high underwriting standards.

Headwinds

  • Significant market volatility resulting from global instability.
  • Increasing inflation.
  • Supply chain constraints.
  • Rising rates.
  • Early signs of credit deterioration from input cost increases, labor shortages, and supply chain constraints.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.2%

Avg return

Earnings day

-1.5%

Avg return

5 days after

+0.6%

Avg return

30 days after

50%

10 / 20 earnings

Positive

+3.9%

Q2 2023

Best reaction

-7.7%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026-1.3%-5.9%-4.5%
Q3 2026+0.9%+1.9%+3.9%
Q2 2026-4.3%-11.6%-10.5%
Q1 2026+1.4%+0.4%+1.6%
Q4 2025-7.7%-2.3%-1.1%
Q3 2025+0.7%+0.7%+5.0%
Q2 2025-0.3%+2.4%+4.8%
Q1 2025+0.3%+2.9%-1.9%
Q4 2024-0.1%-1.9%+2.0%
Q3 2024+0.2%-9.8%-12.2%
Q2 2024-1.4%-1.7%+1.2%
Q1 2024+0.3%-3.4%-3.2%
Q4 2023-0.1%-0.2%+17.5%
Q3 2023+0.0%+2.3%+0.9%
Q2 2023+3.9%+1.0%+7.1%
Q1 2023-0.3%-1.9%-0.9%
Q4 2022+2.3%+0.7%+3.2%
Q3 2021-0.2%-4.3%-4.8%
Q2 2022+1.7%+1.3%+0.8%
Q4 2021+0.3%-1.3%+3.4%

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