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What's in Store for Owl Rock Capital's (ORCC) Q4 Earnings?

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Owl Rock Capital Corporation is slated to report fourth-quarter 2021 earnings on Feb 23, after the market closes.

Q4 Estimates

The Zacks Consensus Estimate for ORCC’s fourth-quarter earnings per share is pegged at 33 cents, which indicates an improvement of 13.8% from the prior-year reported figure.

The consensus mark for revenues stands at $268 million, suggesting 21.3% growth from the year-ago quarter.

Earnings Surprise History

Owl Rock Capital’s bottom line beat estimates in three of the trailing four quarters and missed once. This is depicted in the chart below:

Factors to Note

ORCC’s fourth-quarter performance is expected to have gained from higher investment income driven by continued growth in the company’s investment portfolio. Interest income and dividend income are likely to have contributed to the metric’s growth in the to-be-reported quarter.

The investment activities of Owl Rock Capital are likely to have witnessed an uptrend in the fourth quarter on the back of solid demand prevailing for direct lending solutions and large privately placed unitranche loans. Meanwhile, the company’s dividend income is expected to have increased from its significant investments in Wingspire and senior loan fund.

Repayments are expected to stay higher in the fourth quarter compared to ORCC’s prior quarters barring the third quarter of 2021. Origination volume is expected to remain robust in the to-be-reported quarter, which is likely to have paved the way for continued growth of the Owl Rock Capital’s portfolio.

ORCC is likely to have incurred escalating operating expenses in the fourth quarter due to rise in interest expense, management fee, performance based incentive fees, professional fees and, other general and administrative expenses. This, in turn, might have weighed on the company’s margins in the to-be-reported quarter. Interest expenses are likely to have witnessed an uptick due to increased average daily borrowings.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Owl Rock Capital this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Earnings ESP: ORCC has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Owl Rock Capital carries a Zacks Rank #3.

Stocks to Consider

Some stocks worth considering from the Finance space with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:

CBRE Group, Inc. (CBRE - Free Report) has an Earnings ESP of +8.84% and a Zacks Rank of 2 at present. CBRE is slated to release fourth-quarter 2021 results on Feb 24. You can see the complete list of today’s Zacks #1 Rank stocks here.

Jackson Financial Inc. (JXN - Free Report) has an Earnings ESP of +4.65% and a Zacks Rank #2. JXN is slated to release fourth-quarter 2021 results on Mar 2.

Kingstone Companies, Inc. (KINS - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank #3. KINS is scheduled to report fourth-quarter 2021 results on Mar 10.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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