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 (ORCC) Rises 10.7% Since Q3 Earnings Beat
Read MoreHide Full Article
Owl Rock Capital Corporation’s shares have jumped 10.7% since it reported strong third-quarter results on Nov 2, 2022. The results were supported by growth in the portfolio, increased interest rates and higher dividend income. However, the positives were partially offset by higher costs.
It reported third-quarter 2022 earnings per share of 37 cents, which beat the Zacks Consensus Estimate by 8.8%. The bottom line also improved from 33 cents a year ago.
The total investment income of ORCC amounted to $314.1 million, which climbed from $269.2 million a year ago. The figure also beat the consensus mark by 8.4%.
Owl Rock Capital Corporation Price, Consensus and EPS Surprise
Net investment income rose to $146.8 million from $130.5 million a year ago.
Total new investment commitments were $427.4 million across 13 new portfolio companies and the seven existing ones. The metric plunged 84.7% year over year in the quarter under review.
Owl Rock Capital ended the third quarter with investments in 180 portfolio companies, backed with an aggregate fair value of $12.8 billion. Based on the fair value, the average investment size in each portfolio company was $71.3 million as of Sep 30, 2022.
Total expenses escalated to $165.7 million in the third quarter from $137 million a year ago, primarily due to higher interest expenses and incentive fees.
It recorded a net income of $265.4 million in the third quarter, up from $142.9 million in the prior-year quarter.
Financial Update (as of Sep 30, 2022)
Owl Rock Capital exited the third quarter with cash and restricted cash of $455.2 million, which declined from $447.1 million as of Dec 31, 2021. Total assets of $13.4 billion rose from $13.3 billion at 2021-end.
Debt was at $7.2 billion, up from $7.1 billion at 2021-end. ORCC had $1.7 billion of undrawn capacity under its credit facilities. It currently has no debt maturities until April 2024.
Net cash from operating activities during the first nine months was $122.5 million compared with the prior-year quarter’s cash usage of $854.7 million.
At the third-quarter end, net debt to equity was at 1.18X.
Dividend & Repurchase Update
The board of directors at Owl Rock Capital approved a fourth-quarter dividend of 33 cents per share, up sequentially by 2 cents, to be paid out on or before Jan 13, 2023, to shareholders of record as of Dec 30, 2022. It also provided a third-quarter supplemental dividend of 3 cents per share.
ORCC brought in a share buyback program of $150 million on Nov 1, 2022, with a life span of 18 months.
Outlook
As most of Owl Rock Capital’s assets are floating in nature, an improving interest rate environment is projected to drive net investment income moving forward. The volatile market conditions are also expected to provide ORCC with direct lending opportunities. The company expects fourth-quarter net investment income to be at least 39 cents per share, up from 35 cents a year ago.
Headquartered in Cincinnati, OH, American Financial is a major insurance holding company. The Zacks Consensus Estimate for AFG’s 2022 bottom line is pegged at $11.66 per share, which witnessed two upward estimate revisions in the past 60 days against none in the opposite direction.
New York-based StoneX Group works as a global financial services network. The Zacks Consensus Estimate for SNEX’s 2022 bottom line indicates 54.8% year-over-year growth.
Based in Boca Raton, FL, FlexShopper is a leading e-commerce marketplace operator. The Zacks Consensus Estimate for FPAY’s 2022 earnings is pegged at 70 cents per share, signaling a massive jump from the 4 cents reported a year ago.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Owl Rock Capital (ORCC) Rises 10.7% Since Q3 Earnings Beat
Owl Rock Capital Corporation’s shares have jumped 10.7% since it reported strong third-quarter results on Nov 2, 2022. The results were supported by growth in the portfolio, increased interest rates and higher dividend income. However, the positives were partially offset by higher costs.
It reported third-quarter 2022 earnings per share of 37 cents, which beat the Zacks Consensus Estimate by 8.8%. The bottom line also improved from 33 cents a year ago.
The total investment income of ORCC amounted to $314.1 million, which climbed from $269.2 million a year ago. The figure also beat the consensus mark by 8.4%.
Owl Rock Capital Corporation Price, Consensus and EPS Surprise
Owl Rock Capital Corporation price-consensus-eps-surprise-chart | Owl Rock Capital Corporation Quote
Q3 Update
Net investment income rose to $146.8 million from $130.5 million a year ago.
Total new investment commitments were $427.4 million across 13 new portfolio companies and the seven existing ones. The metric plunged 84.7% year over year in the quarter under review.
Owl Rock Capital ended the third quarter with investments in 180 portfolio companies, backed with an aggregate fair value of $12.8 billion. Based on the fair value, the average investment size in each portfolio company was $71.3 million as of Sep 30, 2022.
Total expenses escalated to $165.7 million in the third quarter from $137 million a year ago, primarily due to higher interest expenses and incentive fees.
It recorded a net income of $265.4 million in the third quarter, up from $142.9 million in the prior-year quarter.
Financial Update (as of Sep 30, 2022)
Owl Rock Capital exited the third quarter with cash and restricted cash of $455.2 million, which declined from $447.1 million as of Dec 31, 2021. Total assets of $13.4 billion rose from $13.3 billion at 2021-end.
Debt was at $7.2 billion, up from $7.1 billion at 2021-end. ORCC had $1.7 billion of undrawn capacity under its credit facilities. It currently has no debt maturities until April 2024.
Net cash from operating activities during the first nine months was $122.5 million compared with the prior-year quarter’s cash usage of $854.7 million.
At the third-quarter end, net debt to equity was at 1.18X.
Dividend & Repurchase Update
The board of directors at Owl Rock Capital approved a fourth-quarter dividend of 33 cents per share, up sequentially by 2 cents, to be paid out on or before Jan 13, 2023, to shareholders of record as of Dec 30, 2022. It also provided a third-quarter supplemental dividend of 3 cents per share.
ORCC brought in a share buyback program of $150 million on Nov 1, 2022, with a life span of 18 months.
Outlook
As most of Owl Rock Capital’s assets are floating in nature, an improving interest rate environment is projected to drive net investment income moving forward. The volatile market conditions are also expected to provide ORCC with direct lending opportunities. The company expects fourth-quarter net investment income to be at least 39 cents per share, up from 35 cents a year ago.
Zacks Rank & Other Key Picks
Owl Rock Capital currently sports a Zacks Rank #1 (Strong Buy). Some other top-ranked stocks in the broader finance space are American Financial Group, Inc. (AFG - Free Report) , StoneX Group Inc. (SNEX - Free Report) and FlexShopper, Inc. (FPAY - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Cincinnati, OH, American Financial is a major insurance holding company. The Zacks Consensus Estimate for AFG’s 2022 bottom line is pegged at $11.66 per share, which witnessed two upward estimate revisions in the past 60 days against none in the opposite direction.
New York-based StoneX Group works as a global financial services network. The Zacks Consensus Estimate for SNEX’s 2022 bottom line indicates 54.8% year-over-year growth.
Based in Boca Raton, FL, FlexShopper is a leading e-commerce marketplace operator. The Zacks Consensus Estimate for FPAY’s 2022 earnings is pegged at 70 cents per share, signaling a massive jump from the 4 cents reported a year ago.