WANAN YOSSINGKUM
Saratoga Investments (NYSE:SAR) fiscal Q1 2025 earnings exceeded the average analyst estimate as stable interest rates during the quarter kept the business development company’s net interest margin elevated, the company said on Tuesday.
Adjusted net investment income per share of $1.05 for the quarter ended May 31, 2024, surpassing the $0.96 consensus, rose from $0.94 in the previous quarter and edged down from $1.08 in the year-ago period.
Total interest from investments climbed to $34.3M in fiscal Q1 from $29.6M a year ago.
“Interest rates continue to remain stable, and market expectations appear to be for minimal changes for most of this calendar year,” said Chairman and CEO Christian L. Oberbeck. “This has resulted in elevated recurring net interest margins on our portfolio relative to the past year.”
Total investment income of $38.7M, topping the $36.5M consensus estimate, rose from $34.6M in Q1 2024.
Originations in the company’s fiscal Q1 slipped to $39.3M from $43.2M in Q4 2024 and $139.8M in Q1 2024. Meanwhile, repayments jumped to $75.7M from $11.02M in the previous quarter and $11.1M in the year-ago quarter.
Saratoga’s (SAR) quarter-end cash position rose to $93.3M, improving effective leverage from 159.6% regulatory leverage to 171.2% net leverage, netting available cash against its outstanding debt, the company said.
Net asset value per share of $26.85 dropped from $27.12 in Q4 2024 and $28.48 in Q1 2024.
Conference call on July 10 at 10:00 AM ET.
Earlier, Saratoga Investment non-GAAP NII of $1.05 beats by $0.10, total investment income of $38.68M beats by $2.21M