Saratoga Investment Corp (NYSE:SAR) stock rose 2.75% (As on July 10, 10:59:46 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 25. As of May 31, 2024, Saratoga Investment’s AUM was $1.096 billion, an increase of 1.1% from $1.084 million as of May 31, 2023, and a decrease of 3.8% from $1.139 billion as of last quarter. This past quarter, $39.3 million in originations was offset by repayments and amortizations of $75.7 million. In addition, during the first quarter, the fair value of the portfolio was decreased by $7.3 million of net realized losses and unrealized appreciation, consisting of $21.2 million of realized losses on the Netreo equity and Zollege investments, partially offset by $13.9 million unrealized appreciation across the portfolio. The realized losses consisted of a $6.1 million realized loss on the Netreo investment, and a $15.1 million realized loss on the Zollege investment. As compared to the quarter ended May 31, 2023, adjusted net investment income for the quarter increased $1.5 million, or 11.6%, from $12.8 million to $14.3 million. The increases in investment income were offset by (i) increased interest expense resulting from the various new Notes Payable and SBA debentures issued during the past year and (ii) increased base and incentive management fees from higher AUM and earnings. Return on equity (“ROE”) for the last twelve months ended May 31, 2024 was 4.4%, down from 7.2% for the comparable period last year. ROE on an annualized basis for the quarter ended May 31, 2024 was 7.2%. NAV was $367.9 million as of May 31, 2024, an increase of $30.4 million from $337.5 million as of May 31, 2023, and a decrease of $2.3 million from $370.2 million as of February 29, 2024.

SAR in the first quarter of FY 25 has reported the adjusted earnings per share of $1.05, beating the analysts’ estimates for the adjusted earnings per share of 97 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $38.68 million in the first quarter of FY 25, beating the analysts’ estimates for revenue by 5.91%.

Additionally, the company has declared a quarterly dividend of $0.74 per share for the fiscal quarter ended May 31, 2024, paid on June 27, 2024, to all stockholders of record at the close of business on June 13, 2024. In the quarter, the company did not purchase any shares of common stock pursuant to the Share Repurchase Plan.