It has been about a month since the last earnings report for Owl Rock Capital Corporation . Shares have added about 3.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Owl Rock Capital Corporation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Owl Rock Capital's Q1 Earnings Miss, Decline Y/Y
Owl Rock Capital’s first-quarter 2021 earnings per share of 26 cents missed the Zacks Consensus Estimate by 10.3% and declined .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 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
Currently, Owl Rock Capital Corporation has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, 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.
Image: Bigstock
Why Is Owl Rock Capital Corporation (ORCC) Up 3.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Owl Rock Capital Corporation . Shares have added about 3.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Owl Rock Capital Corporation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Owl Rock Capital's Q1 Earnings Miss, Decline Y/Y
Owl Rock Capital’s first-quarter 2021 earnings per share of 26 cents missed the Zacks Consensus Estimate by 10.3% and declined .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 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
Currently, Owl Rock Capital Corporation has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, 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.