Owl Rock Capital’s (ORCC) Q3 Earnings Fall Y/Y on Cost Woes

Zacks

Owl Rock Capital Corporation’s ORCC third-quarter 2019 earnings per share of 31 cents declined 29.5% year over year due to rise in expenses, which outpaced growth in net investment income.

Net investment income of the company jumped 92.6% year over year to $137.9 million on the back of higher investment portfolio.

Results in Detail

In the quarter, new investment commitments decreased 10.1% year over year to $1.5 billion.

The company concluded the third quarter with investments in 96 portfolio companies across 27 industries.

The company’s interest expenses shot up 37.6% year over year to $29.4 million.

For the quarter under review, total operating expenses skyrocketed 111.3% to $81.6 million due to higher interest expense, management fees, performance-based incentive fees plus other general and administrative costs.

Capital Position

As of Sep 30, 2019, the company has cash and restricted cash of $197.6 million, up 30.2% year over year. It ended the third quarter with debt of $2.4 billion, down 4.2% from the last year-end level.

As of Sep 30, 2019, the company had total assets of $8.6 billion, up 44% from the level at 2018 end.

Net cash used in operating activities for the first nine months of 2019 totaled $2.1 billion, up 2.8% year over year.

As of Sep 30, 2019, member's equity stands at $183.9 million.

Zacks Rank

Owl Rock Capital carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Releases From the Finance Sector

Among other players from the finance sector, having already reported third-quarter earnings, the bottom-line results of Global Life Inc. GL, Discover Financial Services DFS and Synchrony Financial SYF topped the respective Zacks Consensus Estimate.

Free: Zacks’ Single Best Stock Set to Double

Today you are invited to download our just-released Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.

Download Free Report Now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research

Be the first to comment

Leave a Reply