Saratoga Investment Corp. (SAR) is set to report its third-quarter earnings after the market closes on Wednesday, January 7, 2025, and Wall Street's expectations have shifted noticeably heading into the announcement.

Analysts are projecting quarterly earnings of 59 cents per share, which represents a significant decline from the 90 cents per share the company posted in the same period last year. Revenue expectations tell a different story, with forecasts calling for $31.35 million compared to $35.88 million a year earlier, according to market data.

The company made headlines on November 6 when it announced a new $85 million credit facility with Valley National Bank, a move that could provide additional financial flexibility as it navigates its business operations.

Shares of Saratoga Investment edged up 0.2% to close at $23.07 on Wednesday, showing relative stability despite the mixed outlook.

What Analysts Are Saying

Recent analyst activity paints a cautious picture for the investment firm. Two notable downgrades have emerged from analysts with solid track records:

John Rowan from Janney Montgomery Scott downgraded Saratoga Investment from Buy to Neutral on October 10, 2025. Rowan, who maintains a 51% accuracy rate, signaled a more reserved outlook on the stock's near-term prospects.

Meanwhile, Casey Alexander at Compass Point took a similar stance, downgrading the stock from Buy to Neutral on June 9, 2025. Alexander also reduced the price target from $25.25 to $24.25, reflecting tempered expectations. This analyst carries a more impressive 66% accuracy rate, lending additional weight to the assessment.

The downgrades suggest that even experienced Wall Street forecasters are taking a wait-and-see approach as the company prepares to unveil its quarterly results. With earnings per share expected to drop by roughly a third year-over-year, investors will be watching closely to see if management can provide guidance that restores confidence in the company's trajectory.