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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 2020 earnings per share of 37 cents missed the Zacks Consensus Estimate of 38 cents by 2.6%. Moreover, the bottom line declined 9.8% year over year.

This downside was mainly due to the turmoil in financial markets triggered by the COVID-19 pandemic.

Quarter in Detail

In the quarter, total investment income was $204.7 million, up 35.2% year over year. This upside can be attributable to strengthened investment portfolio.

New investment commitments were nearly $731 million, down 19.9% year over year.

The company concluded the first quarter with investments in 101 portfolio companies across 27 industries.

Net operating expenses of $56 million rose 4.8% year over year due to higher management fees, performance-based incentive fees, professional fees, directors' fees, and other general and administrative costs.

Share Repurchase Update

In the first quarter, the company’s agent Goldman, Sachs & Co. bought back shares worth $48 million under the 10b5-1 Plan.

Financial Update

As of Mar 31, 2020, the company’s interest expenses of $34 million dipped 2.2% year over year.

As of Mar 31, 2020, the company had cash and restricted cash of $0.4 billion, an amount of $3.7 billion in total principal value of debt outstanding and $1.6 billion of undrawn capacity in credit facilities.

As of Mar 31, 2020, the company had total assets worth $9.4 billion, up 2.3% from the level at 2019 end.

It ended the first quarter with debt of nearly $3.6 billion, up 19.8% from the level at last-year end.

Net cash used in operating activities for the first quarter of 2020 totaled $0.3 billion, down 60.3% from the level at 2019 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.

Among other players from the finance sector having reported first-quarter earnings so far, the bottom line of American Express Company (AXP - Free Report) beat estimates while that of Discover Financial Services (DFS - Free Report) and Synchrony Financial (SYF - Free Report) missed the same.

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