Oxford Lane Shares Drop After Revenue, EPS Misses

Oxford Lane Capital Corp. (NASDAQ:OXLC) shares are trading lower Tuesday after the company reported worse-than-expected fourth-quarter financial results.

• Oxford Lane stock is facing resistance. Why are OXLC shares declining?

Q4 Highlights

Oxford Lane reported adjusted earnings per share of $1.03, missing the consensus estimate of $2.65. In addition, it reported revenue of $94.00 million, missing the consensus estimate of $127.00 million.

Net asset value per share was $10.56 as of March 31, down from $15.51 as of Dec. 31.

The company estimated April net asset value per share in the range of $11.12 to $11.42.

Net investment income totaled approximately $54.5 million, or 56 cents per share, during the quarter, while core net investment income was approximately $100.7 million, or $1.03 per share.

Oxford Lane reported a net decrease in net assets resulting from operations of approximately $365.3 million, or $3.74 per share, comprised of net realized losses of approximately $38.4 million and net unrealized depreciation of approximately $381.4 million.

Total investment income decreased to approximately $94.0 million from approximately $117.8 million in the prior quarter.

The weighted average effective yield of the company's CLO equity investments at current cost declined to 11.7% from 13.8% in the prior quarter.

Oxford Lane Shares Fall

OXLC Price Action: At the time of publication, Oxford Lane shares are trading 2.42% lower at $9.68, according to data from Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.