SLR Investment Reports Mixed Q2 Earnings, Dividend Steady

SLR Investment Corp. (SLRC) reported second-quarter earnings per share of $0.40, slightly below the consensus estimate of $0.41, marking a 2.44% earnings surprise miss, while revenues of $53.91 million surpassed estimates by 0.79%. The company maintained its quarterly dividend at $0.41 per share, offering a forward yield of 10.3%, which continues to attract income-focused investors despite the stock's underperformance relative to the S&P 500 this year. Analyst price targets for SLRC vary widely, with a consensus average suggesting a modest 5.41% upside, while GuruFocus projects a significantly higher intrinsic value of $42.41, implying a potential upside of 166.39%. Investment income rose more than expected in the quarter, and net investment income per share was in line with estimates at $0.40. Key financial metrics include a net interest margin of 5.31% and an increase in net interest income year-over-year, though credit loss provisions increased substantially to $149 million from $17 million the previous year, reflecting a more cautious credit environment. Overall, while SLRC's recent performance shows resilience with stable dividend payouts and revenue beats, investors remain cautious due to earnings misses, credit risk trends, and mixed analyst outlooks.