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Blue Owl Capital's Q1 Earnings Miss Estimates on Higher Expenses
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Blue Owl Capital Corporation (OBDC - Free Report) reported first-quarter 2025 earnings per share (EPS) of 39 cents, which missed the Zacks Consensus Estimate of 43 cents. Also, the bottom line declined from 47 cents a year ago.
The total investment income of Blue Owl Capital amounted to $464.6 million, which increased 16.3% year over year. Yet, the top line missed the Zacks Consensus Estimate by 2.6%.
Blue Owl Capital’s first-quarter bottom line was affected by increased expenses. The negatives were partially offset by higher net investment income.
Blue Owl Capital Corporation Price, Consensus and EPS Surprise
Net investment income increased 10.1% year over year to $201.3 million. Also, the metric beat our estimate of $184.7 million. Total new investment commitments were $1.2 billion across 12 new portfolio companies and 22 existing ones.
Blue Owl Capital ended the first quarter with investments in 236 portfolio companies, backed with an aggregate fair value of $17.7 billion. Based on the fair value, the average investment size in each portfolio company was $75 million as of March 31, 2025.
Total expenses increased 22.7% from the year-ago period to $259.6 million in the first quarter, primarily due to higher interest expenses and management fees. The metric was higher than our estimate of $250.4 million.
The company recorded an adjusted net increase in net assets resulting from operations of $159.7 million in the first quarter compared with $182.5 million a year ago. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Financial Update (as of March 31, 2025)
Blue Owl Capital exited the first quarter with a cash balance of $511.5 million, which increased from $505.7 million as of Dec. 31, 2024. Total assets of $18.4 billion rose from $13.9 billion at 2024-end.
Debt was $10.2 billion, up from $7.5 billion at 2024-end. Blue Owl Capital had $2.5 billion of undrawn capacity under its credit facilities. At the first-quarter end, net debt to equity was 1.26X.
Net operating cash flow in the first quarter of 2025 was $38.9 million, down from the prior-year figure of $444.2 million.
Dividend & Repurchase Update
The board of directors at Blue Owl Capital declared a second-quarter 2025 dividend of 37 cents per share, to be paid on or before July 15, 2025, to shareholders of record as of June 30. It also provided a first-quarter 2025 supplemental dividend of 1 cent per share.
Blue Owl Capital had the 2024 Stock Repurchase Program (expiring in 18 months from the approval date of May 6, 2024), under which the company may purchase shares up to $150 million. This Zacks Rank #4 (Sell) company did not make share repurchases under this program in the first quarter.
Here are some other stocks from the broader Finance space that have already reported earnings for this quarter: Capital One (COF - Free Report) , Golub Capital BDC, Inc. (GBDC - Free Report) and Ares Capital Corporation (ARCC - Free Report) .
Capital One’s first-quarter 2025 adjusted earnings of $4.06 per share surpassed the Zacks Consensus Estimate of $3.66 thanks to an improvement in net interest income and robust card spend during the latter part of the quarter. The decline in provisions was also a major tailwind.
Golub Capital reported second-quarter fiscal 2025 adjusted EPS of 39 cents, which missed the Zacks Consensus Estimate by 4.9% and declined from 51 cents a year ago. Over the past four quarters, the company beat consensus EPS estimates just once. Total investment income in second-quarter fiscal 2025 of $213.9 million missed the consensus mark by 4.4%. The figure however rose from $164.2 million a year ago.
Ares Capital’s first-quarter 2025 core earnings of 50 cents per share missed the Zacks Consensus Estimate of 54 cents due to lower portfolio exits and gross commitments. Yet, an improvement in the total investment income, a fall in expenses and the company’s robust activities offered some support.
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Blue Owl Capital's Q1 Earnings Miss Estimates on Higher Expenses
Blue Owl Capital Corporation (OBDC - Free Report) reported first-quarter 2025 earnings per share (EPS) of 39 cents, which missed the Zacks Consensus Estimate of 43 cents. Also, the bottom line declined from 47 cents a year ago.
The total investment income of Blue Owl Capital amounted to $464.6 million, which increased 16.3% year over year. Yet, the top line missed the Zacks Consensus Estimate by 2.6%.
Blue Owl Capital’s first-quarter bottom line was affected by increased expenses. The negatives were partially offset by higher net investment income.
Blue Owl Capital Corporation Price, Consensus and EPS Surprise
Blue Owl Capital Corporation price-consensus-eps-surprise-chart | Blue Owl Capital Corporation Quote
OBDC’s Q1 Update
Net investment income increased 10.1% year over year to $201.3 million. Also, the metric beat our estimate of $184.7 million. Total new investment commitments were $1.2 billion across 12 new portfolio companies and 22 existing ones.
Blue Owl Capital ended the first quarter with investments in 236 portfolio companies, backed with an aggregate fair value of $17.7 billion. Based on the fair value, the average investment size in each portfolio company was $75 million as of March 31, 2025.
Total expenses increased 22.7% from the year-ago period to $259.6 million in the first quarter, primarily due to higher interest expenses and management fees. The metric was higher than our estimate of $250.4 million.
The company recorded an adjusted net increase in net assets resulting from operations of $159.7 million in the first quarter compared with $182.5 million a year ago. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Financial Update (as of March 31, 2025)
Blue Owl Capital exited the first quarter with a cash balance of $511.5 million, which increased from $505.7 million as of Dec. 31, 2024. Total assets of $18.4 billion rose from $13.9 billion at 2024-end.
Debt was $10.2 billion, up from $7.5 billion at 2024-end. Blue Owl Capital had $2.5 billion of undrawn capacity under its credit facilities. At the first-quarter end, net debt to equity was 1.26X.
Net operating cash flow in the first quarter of 2025 was $38.9 million, down from the prior-year figure of $444.2 million.
Dividend & Repurchase Update
The board of directors at Blue Owl Capital declared a second-quarter 2025 dividend of 37 cents per share, to be paid on or before July 15, 2025, to shareholders of record as of June 30. It also provided a first-quarter 2025 supplemental dividend of 1 cent per share.
Blue Owl Capital had the 2024 Stock Repurchase Program (expiring in 18 months from the approval date of May 6, 2024), under which the company may purchase shares up to $150 million. This Zacks Rank #4 (Sell) company did not make share repurchases under this program in the first quarter.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did Other Finance Stocks Perform?
Here are some other stocks from the broader Finance space that have already reported earnings for this quarter: Capital One (COF - Free Report) , Golub Capital BDC, Inc. (GBDC - Free Report) and Ares Capital Corporation (ARCC - Free Report) .
Capital One’s first-quarter 2025 adjusted earnings of $4.06 per share surpassed the Zacks Consensus Estimate of $3.66 thanks to an improvement in net interest income and robust card spend during the latter part of the quarter. The decline in provisions was also a major tailwind.
Golub Capital reported second-quarter fiscal 2025 adjusted EPS of 39 cents, which missed the Zacks Consensus Estimate by 4.9% and declined from 51 cents a year ago. Over the past four quarters, the company beat consensus EPS estimates just once. Total investment income in second-quarter fiscal 2025 of $213.9 million missed the consensus mark by 4.4%. The figure however rose from $164.2 million a year ago.
Ares Capital’s first-quarter 2025 core earnings of 50 cents per share missed the Zacks Consensus Estimate of 54 cents due to lower portfolio exits and gross commitments. Yet, an improvement in the total investment income, a fall in expenses and the company’s robust activities offered some support.