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Owl Rock Capital's (ORCC) Q1 Earnings Miss, Decline Y/Y

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Owl Rock Capital Corporation’s (ORCC - Free Report) first-quarter 2021 earnings per share of 26 cents missed the Zacks Consensus Estimate of 29 cents by 10.3%. Moreover, the same tumbled 29.7% year over year.

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 $222, up 8.3% year over year. This upside was on the back of an increase in the investment portfolio as well as higher dividend income.

New investment commitments were $863.5 million, up 18.1% year over year.

The company concluded the first quarter with investments in 120 portfolio companies with an aggregate fair value of $11.2 billion. As of Mar 31, 2021, the average investment size in each portfolio company was $93.7 million based on fair value.

Total operating expenses of $117.8 million rose 19.1% year over year due to higher management fees and interest expenses. Other factors are expiration of the management fee and incentive fee waivers.

Dividend Update

The company declared a second-quarter dividend of 31 cents per share for its shareholders of record on Jun 30, 2021. The amount will be paid out on or before Aug 13, 2021.

Financial Update (as of Mar 31, 2021)

The company’s interest expenses of $48 million increased 41.6% year over year due to higher average daily borrowings. However, the same was offset to some extent by a decline in the average interest rate.

The company had cash and restricted cash worth $255.3 million, an amount of $5.6 billion as total principal value of debt outstanding and $1.4 billion of undrawn capacity under its credit facilities.

It had total assets worth $11.6 billion, up 2.5% from the level at 2020 end.
It ended the first quarter with $5.5 billion debt, up 4.8% 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 finance sector players that have reported first-quarter results so far, the bottom-line results of  American Express Company  (AXP - Free Report) , Synchrony Financial  (SYF - Free Report) and  Discover Financial Services  (DFS - Free Report) beat the respective Zacks Consensus Estimate.

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