Capital Southwest(CSWC) ZACKS·2025-05-07 15:05Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Capital Southwest (CSWC) despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of 53.71 million, a 15.7% increase from the previous year [3]. - A positive earnings surprise could lead to a stock price increase, while a miss may result in a decline [2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate for Capital Southwest is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +3.23%, suggesting a bullish outlook from analysts [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - Capital Southwest currently holds a Zacks Rank of 2, reinforcing the likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Capital Southwest exceeded the expected earnings of 0.63, resulting in a +1.61% surprise [12]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [13]. Conclusion - While the potential for an earnings beat exists, other factors may influence stock movement, making it essential to consider the broader context beyond just earnings results [14][16].