It has been about a month since the last earnings report for Owl Rock Capital Corporation . Shares have lost about 0.5% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Owl Rock Capital Corporation due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Owl Rock Capital's Q4 Earnings Beat Mark, Tumble Y/Y
Owl Rock Capital’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.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
Currently, Owl Rock Capital Corporation has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Owl Rock Capital Corporation has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Owl Rock Capital Corporation (ORCC) Down 0.5% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Owl Rock Capital Corporation . Shares have lost about 0.5% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Owl Rock Capital Corporation due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Owl Rock Capital's Q4 Earnings Beat Mark, Tumble Y/Y
Owl Rock Capital’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.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
Currently, Owl Rock Capital Corporation has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Owl Rock Capital Corporation has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.