We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Owl Rock Capital's (ORCC) Q4 Earnings Beat Mark, Tumble Y/Y
Read MoreHide Full Article
Owl Rock Capital Corporation’s fourth-quarter 2020 earnings per share of 29 cents beat the Zacks Consensus Estimate by 3.6% on total investment income. However, the same decreased year over year by 21.6%. This downside was mainly due to the COVID-led turmoil in the financial markets and higher expenses.
Quarter in Detail
In the quarter, the company’s total investment income was $221.3, up 9.4% year over year. This upside was on the back of an increase in the investment portfolio.
New investment commitments were $1.5 billion, up 47.9% year over year. The company concluded the fourth quarter with investments in 119 portfolio companies with an aggregate fair value of $10.8 billion. As of Dec 31, 2020, the average investment size in each portfolio company was $91.1 million based on fair value.
Total operating expenses of $106.7 million rose 87.5% year over year due to higher gross management fees, incentive fees and professional fees, interest expenses, etc. Other factors are expiration of the management fee and incentive fee waivers.
Owl Rock Capital Corporation Price, Consensus and EPS Surprise
The company declared a fourth-quarter dividend of 31 cents per share and had previously cleared a special dividend of 8 cents for its stockholders of record as of Dec 31, 2020. The amount will be paid out on or before May 14, 2021.
Financial Update
As of Dec 31, 2020, the company’s interest expenses of $152.9 million increased 12.1% year over year.
As of Dec 31, 2020, the company had cash and restricted cash worth $347.9 million, an amount of $5.4 billion as total principal value of debt outstanding and $2.1 billion of liquidity.
As of Dec 31, 2020, the company had total assets worth $11.3 billion, up 22.8% from the level at 2019 end.
It ended the fourth quarter with $5.3 billion debt, up 74.2% from the level at last-year end.
Full-Year Update
Total investment income of $803.3 million rose 11.9% year over year on the back of an expanded investment portfolio.
For 2020, new investment commitments were down 22.3% year over year. For the full year, the amount of new investments was $2.8 billion across 30 new portfolio companies and 43 existing ones.
Of the other companies in the finance sector that already reported fourth-quarter earnings, the bottom-line results of Visa Inc. (V - Free Report) , Synchrony Financial (SYF - Free Report) and American Express Company (AXP - Free Report) beat the respective Zacks Consensus Estimates.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Owl Rock Capital's (ORCC) Q4 Earnings Beat Mark, Tumble Y/Y
Owl Rock Capital Corporation’s fourth-quarter 2020 earnings per share of 29 cents beat the Zacks Consensus Estimate by 3.6% on total investment income. However, the same decreased year over year by 21.6%.
This downside was mainly due to the COVID-led turmoil in the financial markets and higher expenses.
Quarter in Detail
In the quarter, the company’s total investment income was $221.3, up 9.4% year over year. This upside was on the back of an increase in the investment portfolio.
New investment commitments were $1.5 billion, up 47.9% year over year.
The company concluded the fourth quarter with investments in 119 portfolio companies with an aggregate fair value of $10.8 billion. As of Dec 31, 2020, the average investment size in each portfolio company was $91.1 million based on fair value.
Total operating expenses of $106.7 million rose 87.5% year over year due to higher gross management fees, incentive fees and professional fees, interest expenses, etc. Other factors are expiration of the management fee and incentive fee waivers.
Owl Rock Capital Corporation Price, Consensus and EPS Surprise
Owl Rock Capital Corporation price-consensus-eps-surprise-chart | Owl Rock Capital Corporation Quote
Dividend Update
The company declared a fourth-quarter dividend of 31 cents per share and had previously cleared a special dividend of 8 cents for its stockholders of record as of Dec 31, 2020. The amount will be paid out on or before May 14, 2021.
Financial Update
As of Dec 31, 2020, the company’s interest expenses of $152.9 million increased 12.1% year over year.
As of Dec 31, 2020, the company had cash and restricted cash worth $347.9 million, an amount of $5.4 billion as total principal value of debt outstanding and $2.1 billion of liquidity.
As of Dec 31, 2020, the company had total assets worth $11.3 billion, up 22.8% from the level at 2019 end.
It ended the fourth quarter with $5.3 billion debt, up 74.2% from the level at last-year end.
Full-Year Update
Total investment income of $803.3 million rose 11.9% year over year on the back of an expanded investment portfolio.
For 2020, new investment commitments were down 22.3% year over year. For the full year, the amount of new investments was $2.8 billion across 30 new portfolio companies and 43 existing ones.
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 fourth-quarter earnings, the bottom-line results of Visa Inc. (V - Free Report) , Synchrony Financial (SYF - Free Report) and American Express Company (AXP - Free Report) beat the respective Zacks Consensus Estimates.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>