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Owl Rock Capital's (ORCC) Q2 Earnings Miss, Decrease Y/Y

Owl Rock Capital Corporation’s ORCC second-quarter 2020 earnings per share of 34 cents missed the Zacks Consensus Estimate by 8.1%. Moreover, the bottom line declined 19% year over year.

This downside was mainly due to the COVID-19-led turmoil in the financial markets.

Quarter in Detail

In the quarter, total investment income was $190.2 million, up 8% year over year. This upside can be attributed to a strengthened investment portfolio. However, the same was partly offset by a decline in portfolio yield.

New investment commitments were $342.7 million, down 53.1% year over year.

The company concluded the second quarter with investments in 102 portfolio companies with an aggregate fair value of $9.2 billion.

Net operating expenses of $101 million rose 79.2% year over year due to higher management fees, performance-based incentive fees and professional fees.

Dividend Update

The company declared a third-quarter dividend of 31 cents per share and had previously cleared a special dividend of 8 cents for its stockholders of record as of Sep 30, 2020. The amount will be paid out on or before Nov 13, 2020.

Financial Update

As of Jun 30, 2020, the company’s interest expenses of $39 million increased 6.3% year over year.

As of Jun 30, 2020, the company had cash and restricted cash of $0.2 billion, an amount of $3.5 billion in total principal value of debt outstanding and $1.7 billion of undrawn capacity in credit facilities.

As of Jun 30, 2020, the company had total assets worth $9.5 billion, up 3.2% from the level at 2019-end.

It ended the second quarter with $3.5 billion debt, up 15% from the level at last-year 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 other companies in the finance sector that already reported second-quarter earnings, the bottom-line results of American Express Company AXP, Visa Inc. V and Synchrony Financial SYF beat the respective Zacks Consensus Estimate.

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