Oxford Lane Capital Corp (NASDAQ:OXLC) saw its stock price plummet 7.29% during Wednesday's intraday trading session, following the release of disappointing fiscal first-quarter earnings and the announcement of a reverse stock split. The sharp decline reflects investor concerns over the company's financial performance and strategic decisions.

The company reported fiscal Q1 core net investment income of $0.24 per share, falling short of the analyst consensus estimate of $0.26. This represents a significant 41.46% decrease from the $0.41 per share reported in the same period last year. Additionally, quarterly sales came in at $124 million, missing the analyst estimate of $142 million by 12.68%, despite showing a 38.08% increase year-over-year. Oxford Lane Capital's net asset value as of June 30 was $4.12 per share, below the $4.42 expected by analysts, further disappointing investors.

Adding to the negative sentiment, Oxford Lane Capital's board approved a 1-for-5 reverse stock split, expected to occur in the quarter ending September 30. While this move is typically aimed at boosting the share price and improving stock marketability, it appears to have contributed to the sharp sell-off. The combination of missed earnings targets, lower-than-expected net asset value, and the reverse stock split announcement has significantly shaken investor confidence, resulting in the substantial intraday decline of 7.29%.