Capital Southwest Corporation Just Missed EPS By 22%: Here's What Analysts Think Will Happen Next

The quarterly results for Capital Southwest Corporation (NASDAQ:CSWC) were released last week, making it a good time to revisit its performance. Revenue of US$57m surpassed estimates by 2.6%, although statutory earnings per share missed badly, coming in 22% below expectations at US$0.44 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.NasdaqGS:CSWC Earnings and Revenue Growth November 6th 2025 Following the latest results, Capital Southwest's seven analysts are now forecasting revenues of US$228.2m in 2026. This would be an okay 5.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 43% to US$2.21. Before this earnings report, the analysts had been forecasting revenues of US$226.9m and earnings per share (EPS) of US$2.18 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates. Check out our latest analysis for Capital Southwest It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$23.58. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Capital Southwest, with the most bullish analyst valuing it at US$27.00 and the most bearish at US$21.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Capital Southwest is an easy business to forecast or the the analysts are all using similar assumptions. Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Capital Southwest's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 27% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.0% per year. So it's pretty clear that, while Capital Southwest's revenue growth is expected to slow, it's still expected to grow faster than the industry itself. The Bottom Line The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Capital Southwest going out to 2027, and you can see them free on our platform here.. Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Capital Southwest (1 can't be ignored) you should be aware of.