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Owl Rock Capital (ORCC) Q4 Earnings Beat, Revenues Rise Y/Y
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Owl Rock Capital Corporation reported fourth-quarter 2022 earnings per share of 41 cents, which beat the Zacks Consensus Estimate by a penny. The bottom line also improved from 35 cents a year ago.The results were supported by growth in the portfolio, increased interest rates and record net investment income. However, the positives were partially offset by higher costs.
The total investment income of ORCC amounted to $350.5 million, which climbed from $281.6 million a year ago.The top line beat the Zacks Consensus Estimate by 6.8%. ORCC achieved a record net investment income on the back of constant earnings momentum from high-interest rates.
Owl Rock Capital Corporation Price, Consensus and EPS Surprise
Net investment income rose to $162.4 million from $146.7 million a year ago.
Total new investment commitments were $211.2 millionacross six new portfolio companies and two existing ones. The metric plunged 86.7% year over year in the quarter under review.
Owl Rock Capital ended 2022 with investmentsin 184 portfolio companies, backed with an aggregate fair value of $13 billion. Based on the fair value, the average investment size in each portfolio company was $70.7 million as of Dec 31, 2022.
Total expenses escalated to $188.0 million in the fourth quarter from $143.8 million a year ago, primarily due to higher interest expenses, gross management and incentive fees.
The company recorded a net income of $191.8 million in the fourth quarter, up from $174 million in the prior-year quarter.
Financial Update (as of Dec 31, 2022)
Owl Rock Capital exited 2022 with cash and restricted cash of $455.1 million, which declined from $447.1 million as of Dec 31, 2021. Total assets of $13.5 billion rose from $13.3 billion at 2021-end.
Debt was $7.2 billion, up from $7.1 billion at 2021-end.ORCC had $1.4 billion of undrawn capacity under its credit facilities. It currently has no debt maturities until April 2024.
Net cash from operating activities in 2022 was $217.2 million compared with the prior-year’s cash usage of $1.2 billion.
At 2022-end, net debt to equity was 1.19X compared with 1.18x in the last quarter.
Dividend & Repurchase Update
The board of directors at Owl Rock Capital declared a first-quarter 2023 dividend of 33 cents per share to be paid out on or before Apr 14, 2023, to shareholders of record as of Mar 31, 2023. It also provided a fourth-quarter 2022 supplemental dividend of 4 cents per share.
ORCC brought in a share buyback program of $150 million on Nov 1, 2022, with a life span of 18 months. As of Feb 17, 2023, $52 million of ORCC stock was purchased, of which 67% was bought by ORCC at a price of $12.05 per share.
Full Year Highlights
Total Investment Income for 2022 was $1.2 billion up from 2021-end figure of $1 billion.
Earnings per share for 2022 was $1.18 up from the previous year figure of $1.59.
Total year expenses increased to $639.5 million in 2022 from $527.3 million in 2021-end.
Outlook
Most of Owl Rock Capital’s assets are floating, so an improving interest rate environment is projected to drive net investment income. Included in Investment Income are Pre-Payment fees, which are expected to increase as the interest rate stabilizes, thereby increasing repayments.
Zacks Rank & Key Picks
Owl Rock Capital currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Financial-Miscellaneous Services segment that have reported results so far are Euronet Worldwide (EEFT - Free Report) , Synchrony Financial (SYF - Free Report) and American Express Company (AXP - Free Report) .
Let’s see how they’ve performed.
Euronet Worldwide reported fourth-quarter 2022 adjusted earnings of $1.39 per share, which outpaced the Zacks Consensus Estimate by 14.9% and our estimate of $1.20. The bottom line improved 21% year over year.
Total revenues amounted to $865.7 million, which rose 7% year over year or 16% on a constant-currency basis in the quarter under review. The top line beat the consensus mark by a whisker and our estimate of $855 million.
Synchrony Financial reported fourth-quarter 2022 adjusted earnings per share of $1.26, which outpaced the Zacks Consensus Estimate by 12.5%. However, the bottom line dropped nearly 15% year over year.
The net interest income of SYF amounted to $4,106 million, which improved 7.2% year over year. The top line beat the consensus mark by 1.7% and exceeded our estimate of $3,930.2 million.
American Express reported its fourth-quarter 2022 earnings of $2.07 per share, missing the Zacks Consensus Estimate of $2.18. The bottom line also decreased 5% year over year.
For the quarter under review, AXP’s total revenues net of interest expense increased 17% year over year to $14,176 million. The top line, however, missed the Zacks Consensus Estimate of $14,246 million.
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Owl Rock Capital (ORCC) Q4 Earnings Beat, Revenues Rise Y/Y
Owl Rock Capital Corporation reported fourth-quarter 2022 earnings per share of 41 cents, which beat the Zacks Consensus Estimate by a penny. The bottom line also improved from 35 cents a year ago.The results were supported by growth in the portfolio, increased interest rates and record net investment income. However, the positives were partially offset by higher costs.
The total investment income of ORCC amounted to $350.5 million, which climbed from $281.6 million a year ago.The top line beat the Zacks Consensus Estimate by 6.8%. ORCC achieved a record net investment income on the back of constant earnings momentum from high-interest rates.
Owl Rock Capital Corporation Price, Consensus and EPS Surprise
Owl Rock Capital Corporation price-consensus-eps-surprise-chart | Owl Rock Capital Corporation Quote
Q4 Update
Net investment income rose to $162.4 million from $146.7 million a year ago.
Total new investment commitments were $211.2 millionacross six new portfolio companies and two existing ones. The metric plunged 86.7% year over year in the quarter under review.
Owl Rock Capital ended 2022 with investmentsin 184 portfolio companies, backed with an aggregate fair value of $13 billion. Based on the fair value, the average investment size in each portfolio company was $70.7 million as of Dec 31, 2022.
Total expenses escalated to $188.0 million in the fourth quarter from $143.8 million a year ago, primarily due to higher interest expenses, gross management and incentive fees.
The company recorded a net income of $191.8 million in the fourth quarter, up from $174 million in the prior-year quarter.
Financial Update (as of Dec 31, 2022)
Owl Rock Capital exited 2022 with cash and restricted cash of $455.1 million, which declined from $447.1 million as of Dec 31, 2021. Total assets of $13.5 billion rose from $13.3 billion at 2021-end.
Debt was $7.2 billion, up from $7.1 billion at 2021-end.ORCC had $1.4 billion of undrawn capacity under its credit facilities. It currently has no debt maturities until April 2024.
Net cash from operating activities in 2022 was $217.2 million compared with the prior-year’s cash usage of $1.2 billion.
At 2022-end, net debt to equity was 1.19X compared with 1.18x in the last quarter.
Dividend & Repurchase Update
The board of directors at Owl Rock Capital declared a first-quarter 2023 dividend of 33 cents per share to be paid out on or before Apr 14, 2023, to shareholders of record as of Mar 31, 2023. It also provided a fourth-quarter 2022 supplemental dividend of 4 cents per share.
ORCC brought in a share buyback program of $150 million on Nov 1, 2022, with a life span of 18 months. As of Feb 17, 2023, $52 million of ORCC stock was purchased, of which 67% was bought by ORCC at a price of $12.05 per share.
Full Year Highlights
Total Investment Income for 2022 was $1.2 billion up from 2021-end figure of $1 billion.
Earnings per share for 2022 was $1.18 up from the previous year figure of $1.59.
Total year expenses increased to $639.5 million in 2022 from $527.3 million in 2021-end.
Outlook
Most of Owl Rock Capital’s assets are floating, so an improving interest rate environment is projected to drive net investment income. Included in Investment Income are Pre-Payment fees, which are expected to increase as the interest rate stabilizes, thereby increasing repayments.
Zacks Rank & Key Picks
Owl Rock Capital currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Financial-Miscellaneous Services segment that have reported results so far are Euronet Worldwide (EEFT - Free Report) , Synchrony Financial (SYF - Free Report) and American Express Company (AXP - Free Report) .
Let’s see how they’ve performed.
Euronet Worldwide reported fourth-quarter 2022 adjusted earnings of $1.39 per share, which outpaced the Zacks Consensus Estimate by 14.9% and our estimate of $1.20. The bottom line improved 21% year over year.
Total revenues amounted to $865.7 million, which rose 7% year over year or 16% on a constant-currency basis in the quarter under review. The top line beat the consensus mark by a whisker and our estimate of $855 million.
Synchrony Financial reported fourth-quarter 2022 adjusted earnings per share of $1.26, which outpaced the Zacks Consensus Estimate by 12.5%. However, the bottom line dropped nearly 15% year over year.
The net interest income of SYF amounted to $4,106 million, which improved 7.2% year over year. The top line beat the consensus mark by 1.7% and exceeded our estimate of $3,930.2 million.
American Express reported its fourth-quarter 2022 earnings of $2.07 per share, missing the Zacks Consensus Estimate of $2.18. The bottom line also decreased 5% year over year.
For the quarter under review, AXP’s total revenues net of interest expense increased 17% year over year to $14,176 million. The top line, however, missed the Zacks Consensus Estimate of $14,246 million.