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Owl Rock Capital's (ORCC) Q2 Earnings Beat, Decrease Y/Y

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Owl Rock Capital Corporation’s second-quarter 2021 earnings per share of 30 cents beat the Zacks Consensus Estimate of 29 cents by 3.4% on the back of higher prepayment-related income. However, the same declined 11.8% year over year.

The company witnessed a better investment income and new investment commitments in the second quarter. However, the same was partly offset by escalating expenses.

Quarter in Detail

In the quarter, the company’s total investment income was $249, up 30.9% year over year. This upside was on the back of an enhanced investment portfolio and a hike in investment income as a result of higher dividend income.

New investment commitments were $1.58 billion across 16 new portfolio companies and 12 current portfolio companies, down 360% year over year.

The company concluded the second quarter with investments in 129 portfolio companies with an aggregate fair value of $11.9 billion. As of Jun 30, 2021, the average investment size in each portfolio company was $92.3 million based on fair value.

Total operating expenses of $129.7 million rose 27.6% year over year due to higher management fees and interest expenses along with the expiration of the management and incentive fee waiver in October 2020.

The company’s interest expenses of $54.4 million increased 38.9% year over year due to higher average daily borrowings. However, the same was partly offset by a reduced average interest rate.

Dividend Update

The company declared a second-quarter dividend of 31 cents per share for its shareholders of record on Sep 30, 2021. The amount will be paid out on or before Nov 15, 2021.

Financial Update (as of Jun 30, 2021)

The company had cash and restricted cash worth $627.2 million, up 75.3% from the level as of Dec 31, 2020.

The company exited the second quarter with $6.38 billion of debt, up 20.6% from the level on Dec 31, 2020. Owl Rock Capital had $1.6 billion of undrawn capacity under its credit facilities.

It had total assets worth $12.6 billion, up 33% from the level at 2020 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 second-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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