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Owl Rock Capital's (ORCC) Q3 Earnings Beat Mark, In Line Y/Y

Owl Rock Capital Corporation’s ORCC third-quarter 2021 earnings per share of 33 cents beat the Zacks Consensus Estimate by 3.1% on the back of higher investment income. The results were same as the year-ago quarter’s reported figure.

The company witnessed a better investment income and new investment commitments in the third quarter. However, the same was partly offset by escalating expenses.

Quarter in Detail

In the quarter, the company’s total investment income was $269.1, up 43.9% year over year. This upside was on the back of higher interest income, dividend income, other income, total investment income from non-controlled, non-affiliated investments.

New investment commitments were $2.79 billion across 21 new portfolio companies and 13 current portfolio companies, up 231.1% year over year.

The company concluded the third quarter with investments in 130 portfolio companies with an aggregate fair value of $12.1 billion. As of Sep 30, 2021, the average investment size in each portfolio company was $93.2 million, based on fair value.

Total operating expenses of $137 million rose 35.2% year over year due to interest expense, management fee, performance-based incentive fees, professional fees, other general and administrative expenses.

The company’s interest expenses of $56.5 million increased 51.1% year over year due to higher average daily borrowings. However, the same was partly offset by a reduced average interest rate.

Dividend Update

The company declared a fourth-quarter dividend of 31 cents per share for its shareholders of record on Dec 31, 2021. The amount will be paid out on or before Jan 31, 2022

Financial Update (as of Sep 30, 2021)

The company had cash and restricted cash worth $794.7 million at the end of the third quarter.

The company exited the third quarter with $7 billion of debt, up 31% from the level on Dec 31, 2020. Owl Rock Capital had $1.6 billion of undrawn capacity under its credit facilities.

It had total assets worth $13 billion, up 15.7% from the level at 2020 end.

Zacks Rank & Peer Releases

Owl Rock Capital currently carries a Zacks Rank #3 (Hold). You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Of the finance sector players that have reported third-quarter results so far, the bottom-line results of American Express Company AXP, Synchrony Financial SYF and Discover Financial Services DFS beat the respective Zacks Consensus Estimate.

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