Oxford Lane Capital Corp. OXLC reported fourth-quarter fiscal 2021 (ended Mar 31) core net investment income per share of 47 cents, representing an increase of 27% from the previous quarter.

In the reported quarter, the company recorded an increase in total investment income, which supported results to some extent. However, total expenses increased from the previous quarter. The portfolio activity remained decent.

GAAP net investment income was 23 cents per share, up from 21 cents recorded in the previous quarter.

Total Investment Income & Expenses Rise

Total investment income was $36.1 million, up 15% sequentially.

Total expenses amounted to $14.5 million, up from $12.5 million recorded in the previous quarter.

Portfolio Activity

In the reported quarter, Oxford Lane made additional investments of $175.9 million, and received $62.5 million from sales and repayments of collateralized loan obligation (CLO) investments.

As of Mar 31, 2021, the total fair value of investments was $826 million, up from $698.4 million as of Dec 31, 2020.

Net asset value was $5.94 per share as of Mar 31, 2021, up from $5.44 per share recorded at the end of December 2020.

Our Take

Oxford Lane remains well-positioned for top-line growth, supported by its continued solid investments. However, an increase in expenses might hurt its bottom line.

Oxford Lane Capital Corp. Price, Consensus and EPS Surprise

Oxford Lane Capital Corp. price-consensus-eps-surprise-chart | Oxford Lane Capital Corp. Quote

Currently, Oxford Lane carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Finance Companies

Goldman Sachs BDC’s GSBD first-quarter 2021 adjusted net investment income of 48 cents per share was in line with the Zacks Consensus Estimate. Also, the bottom line grew 6.7% from the year-ago figure.

Ares Capital Corporation’s ARCC first-quarter 2021 core earnings of 43 cents per share surpassed the Zacks Consensus Estimate of 42 cents. Moreover, the bottom line reflects a rise of 4.9% from the prior-year quarter’s reported number.

Hercules Capital Inc.’s HTGC first-quarter 2021 net investment income of 30 cents per share beat the Zacks Consensus Estimate by a penny. However, the bottom line declined 18.9% year over year.

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Ares Capital Corporation (ARCC) : Free Stock Analysis Report

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