WhiteHorse Finance, Inc. (NASDAQ:WHF) operates within the Zacks Financial - SBIC & Commercial Industry sector, focusing on financing solutions for small and medium-sized businesses. WHF is recognized for its strategic position in the non-sponsored market, aiming for better risk-adjusted returns with less competition. The company upholds rigorous underwriting standards and credit quality to sustain a stable investment portfolio.
On March 7, 2025, WHF reported an EPS of $0.343, missing the estimated $0.39. This represents a 12.82% negative surprise, as highlighted by Zacks, and a decline from $0.46 in the same quarter the previous year. Over the past four quarters, WHF has exceeded consensus EPS estimates only once, indicating challenges in meeting market expectations.
WHF's revenue for the quarter was $21.009 million, slightly below the estimated $21.947 million. This is a 6.51% shortfall from the Zacks Consensus Estimate and a decrease from $25.63 million in the same quarter a year ago. Similar to its earnings performance, WHF has surpassed consensus revenue estimates only once in the last four quarters, reflecting ongoing revenue challenges.
Despite these financial challenges, WHF's board declared a quarterly distribution of $0.385 per share, payable on April 4, 2025. CEO Stuart Aronson acknowledged specific challenges within their investment portfolio but emphasized the company's commitment to optimizing outcomes. He noted that the majority of the portfolio remains stable and is performing well.
WHF's financial metrics include a price-to-earnings (P/E) ratio of approximately 22.48, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio is about 2.93, suggesting the market values its sales at nearly three times its revenue. The enterprise value to sales ratio is around 2.68, reflecting the company's total valuation relative to its sales. The current ratio is approximately 0.80, which may suggest potential liquidity challenges in covering short-term liabilities with current assets.
