Core Viewpoint - Blue Owl Capital Corporation reported mixed financial results for the fourth quarter of 2024, with earnings per share meeting estimates but showing a decline year-over-year, alongside a slight decrease in total investment income [1][3]. Financial Performance - The fourth-quarter earnings per share (EPS) was 47 cents, matching the Zacks Consensus Estimate but down from 51 cents a year ago [1]. - Total investment income for the fourth quarter was $394.39 million, a decrease of 4.1% year-over-year, and it missed the Zacks Consensus Estimate by 0.3% [1][2]. - Net investment income fell 7.4% year-over-year to $184.2 million, although it exceeded the estimate of $180.7 million [4]. - Full-year total investment income for 2024 was $1.6 billion, reflecting a 0.9% increase year-over-year, while full-year EPS was $1.89, down 2.1% from the previous year [3]. Expenses and Income - Total expenses for the fourth quarter increased by 0.8% year-over-year to $209.7 million, primarily due to higher interest expenses and management fees, but were lower than the estimate of $210.7 million [5]. - The company recorded a net income of $154.9 million in the fourth quarter, compared to $189 million a year ago [5]. Investment Commitments - New investment commitments for 2024 totaled $7.3 billion across 93 new portfolio companies and 68 existing ones [3]. - In the fourth quarter, total new investment commitments were $1.7 billion across 27 new portfolio companies and 17 existing ones [4]. Balance Sheet and Cash Flow - As of December 31, 2024, Blue Owl Capital had a cash balance of $505.7 million, down from $658.7 million at the end of 2023 [6]. - Total assets increased to $13.87 billion from $13.51 billion at the end of 2023, while debt rose to $7.46 billion from $7.08 billion [6]. - Net operating cash flow in 2024 was $160.2 million, significantly down from $1.14 billion in the prior year [7]. Dividend and Share Repurchase - The board declared a first-quarter 2025 dividend of 37 cents per share, payable on or before April 15, 2025, and a supplemental dividend of 5 cents per share for the fourth quarter of 2024 [8]. - The company has a stock repurchase program allowing for the purchase of up to $150 million in shares, but no repurchases were made in 2024 [9].

Blue Owl Capital Corporation (OBDC) Q4 2024 Earnings Call February 20, 2025 10:00 AM ET Company Participants Michael Mosticchio - Principal & Head of BDC Investor RelationsCraig W. Packer - Co-PresidentLogan Nicholson - MD and President - Blue Owl BDCJonathan Lamm - MD and CFO & COO of Blue Owl BDCMickey Schleien - MD - Equity ResearchPaul Johnson - Vice President Conference Call Participants Brian Mckenna - AnalystCasey Alexander - Senior Vice President & Research AnalystRobert Dodd - AnalystFinian O'shea ...

Blue Owl Capital Corporation (NYSE: OBDC) February 2025 Blue Owl Capital Corporation (NYSE: OBDC) Second largest publicly traded business development company (BDC) by market capitalization Investment Approach Managed by Blue Owl OBDC Highlights | PORTFOLIO | $17.4 billion across 236 portfolio | | --- | --- | | | companies | | ASSET MIX | 83% senior secured | | | 78% first lien investments | | | 96% floating rate debt investments1 | | DEBT PORTFOLIO | 11.1%1,3 | | YIELD | | | LEVERAGE | 1.20x net debt-to-equ ...

Financial Data and Key Metrics Changes - The company reported a fourth quarter net investment income (NII) of $0.47 per share and a full year NII of $1.89 per share, achieving a return on equity (ROE) of 12.4% for the quarter and 12.2% for the full year [6][24] - The net asset value (NAV) per share at quarter end was $15.26, approximately in line with the prior quarter, reflecting the stability of the portfolio [6][24] - The company paid out record dividends totaling $1.72 per share for 2024, marking a nearly 10% increase year over year [7] Business Line Data and Key Metrics Changes - The company committed over $27 billion in direct originations in 2024, roughly double from 2023, with approximately $1.2 billion deployed in the fourth quarter [16] - First lien investments increased from 68% to 76% of the portfolio, and when combined with OBDE's portfolio, first lien investments rose to 78% pro forma [16] - The average hold size on new direct lending deals grew from $200 million in 2021 to roughly $350 million in 2024, with total deal sizes nearly doubling from $600 million to over $1 billion [11] Market Data and Key Metrics Changes - The non-accrual rate remained low at 40 basis points of the portfolio at fair value, reflecting no new additions this quarter [20] - The median EBITDA of portfolio borrowers was $119 million, with a weighted average EBITDA of $200 million and an average loan-to-value (LTV) of 44% [17] - Interest coverage across the portfolio was approximately 1.8 times, up from a trough of 1.6 times [18] Company Strategy and Development Direction - The company aims to leverage its scale and disciplined investment approach to maintain competitive advantages in the direct lending market [9][10] - The merger with OBDE has positioned the company as the second largest publicly traded BDC by total assets, expected to drive lower financing costs and operational synergies [12][13] - The company plans to optimize its portfolio and asset mix for improved yield, potentially increasing investments in strategic equity and joint ventures [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the portfolio despite macroeconomic uncertainties, noting continued modest growth in revenues and EBITDA across portfolio companies [86] - The company anticipates supportive market conditions in 2025, which may drive a potential pickup in M&A activity [31] - Management highlighted the importance of incumbency relationships, with about 50% of originations in 2024 coming from existing portfolio companies [12][99] Other Important Information - The company established a joint venture across all BDCs to create a more efficient investment structure, winding down OBDC's senior loan fund [29] - Total liquidity at quarter end was $3.2 billion, well in excess of unfunded commitments [28] - The company plans to file a $750 million at-the-market equity issuance program to raise capital under supportive market conditions [28] Q&A Session Summary Question: What can OBDC deliver in terms of ROEs in 2025 and beyond? - Management indicated that while headwinds from lower rates and spreads may impact ROE, they expect to generate an additional 50 to 75 basis points of ROE through the merger benefits and portfolio optimization [40][41] Question: How does the evolution of public BDCs play into the growth of the broader direct lending platform? - Management emphasized the continued execution of the OBDC strategy while expanding credit capabilities, which will enhance the origination funnel and relevance to borrowers [45][46] Question: Where is the portfolio in terms of recognizing Fed rate cuts? - Approximately 70% of the portfolio is recognized in terms of resets from Fed rate cuts [54] Question: What proportion of the portfolio is still above legacy assets with higher spreads? - Management estimated that about 10% to 15% of the portfolio could still be at risk of opportunistic refinancing with lower spreads [66] Question: How is the amendment activity trending? - Amendment activity was flat quarter over quarter, with no significant uptick in material amendments [111]

Blue Owl Capital Corporation (OBDC) came out with quarterly earnings of $0.47 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post earnings of $0.48 per share when it actually produced earnings of $0.47, delivering a surprise of -2.08%.Over the last four quarters, the company has surpassed consensus EPS estimates just once.Blue Owl Capital C ...

NEW YORK, Feb. 19, 2025 /PRNewswire/ -- Blue Owl Capital Corporation (NYSE: OBDC, or the "Company") today announced financial results for its full year and fourth quarter ended December 31, 2024. FOURTH QUARTER 2024 HIGHLIGHTS Fourth quarter net investment income ("NII") per share of $0.47, in-line with the prior quarter and exceeding the regular dividend by 27% Based on OBDC's supplemental dividend framework, the Board of Directors (the "Board") declared a fourth quarter supplemental dividend of $0.05 per ...

Financial Performance - For the three months ended December 31, 2024, total investment income per share for OBDC was $1.01, while for OBDE it was $1.05[23] - Net investment income per share for OBDC was $0.47, compared to $0.43 for OBDE[23] - As of December 31, 2024, total assets for the combined company were $18.351 billion, with total outstanding debt of $10.082 billion[25] - The combined company had total net assets of $7.792 billion and a net asset value per share of $15.26[25] - The net debt-to-equity ratio for OBDC was 1.19x, while for OBDE it was 1.25x, resulting in a pro forma ratio of 1.20x[25] - The company reported a non-accrual rate of 0.4% of total investments as of December 31, 2024[27] - The top 15 investments represented 32.0% of total investments for OBDC and 28.0% for OBDE[27] Assets Under Management - As of December 31, 2024, the company managed $135.71 billion in assets under management (AUM)[32] - As of December 31, 2024, the diversified lending strategy had $66.8 billion of assets under management[33] - As of December 31, 2024, the technology lending strategy had $24.5 billion of assets under management[33] - As of December 31, 2024, the first lien lending strategy had $4.5 billion of assets under management[33] - As of December 31, 2024, the opportunistic lending strategy had $2.3 billion of assets under management[33] - As of December 31, 2024, the Blue Owl Credit platform's various strategies had $37.6 billion of assets under management[35] Market Environment - The U.S. middle market consists of approximately 200,000 companies, accounting for one-third of private sector GDP[39] - U.S. middle-market companies are expected to continue requiring access to debt capital for refinancing, growth, and acquisitions[39] - Regulatory and structural factors are limiting traditional financing available to U.S. middle-market companies[39] - The company believes the middle-market lending environment provides opportunities for attractive risk-adjusted returns[38] - The private credit market is expected to continue expanding, with an estimated $2.6 trillion of uninvested capital held by private equity firms as of December 31, 2024, driving deal activity[42] - Middle-market companies have shown higher levels of cash flows available to service their debt due to more conservative capital structures post-global credit crisis[44] Investment Strategy - The company focuses on upper middle-market companies with a history of profitability and a high percentage of recurring revenue, avoiding start-ups without sustainable cash flow[55] - The company employs a defensive investment approach, emphasizing long-term credit performance and principal protection through ongoing monitoring of investments[52] - The company seeks to invest in companies with strong competitive positions, analyzing factors such as product quality and customer loyalty[56] - The investment strategy includes a diversified approach, targeting no more than 20% of the portfolio in any single industry classification[63] - The company aims for exits primarily through strategic acquisitions, initial public offerings, or recapitalizations, rather than relying solely on operating cash flows[59] - The investment strategy targets middle-market companies with EBITDA between $10 million and $250 million and annual revenue of $50 million to $2.5 billion[82] Portfolio Composition - The portfolio composition is expected to be primarily debt or income-producing securities, with a focus on "covenant-lite" loans and a lesser allocation to equity investments[73] - As of December 31, 2024, 51% of the first-lien debt is comprised of unitranche loans, which combine features of first-lien and second-lien debt[76] - The company aims to maintain a loan-to-value ratio of 50% or lower for its investments to preserve capital[82] - The investment objective is to generate current income and, to a lesser extent, capital appreciation through favorable risk-adjusted returns[82] - The company may invest up to 30% of its portfolio in non-qualifying portfolio companies, including those outside the United States[83] Risk Management - The investment process includes ongoing portfolio monitoring and evaluation of financial trends to ensure adherence to business plans[70] - The company utilizes a credit watch list to monitor investments and address financial stress before payment defaults occur[71] - The investment strategy includes negotiating covenants to protect capital and manage risk, including affirmative and negative covenants[80] - The company may engage in opportunistic investments to enhance returns, including high-yield bonds and broadly syndicated loans[73] Financial Commitments and Growth - The company had outstanding commitments to fund unfunded investments totaling $1.44 billion as of December 31, 2024, up from $0.95 billion in 2023, indicating a 51.6% increase[88] - The asset coverage ratio was 178% as of December 31, 2024, down from 183% in 2023, but still above the required 150%[100] - The company’s common equity investments increased from $986.7 million in 2023 to $1.24 billion in 2024, marking a 25.7% increase in value[85] Sector Focus - The healthcare technology sector represented 6.2% of the investment portfolio in 2024, up from 5.0% in 2023, indicating a strategic shift towards this industry[90] - The company’s financial services investments increased to 3.5% in 2024 from 2.2% in 2023, reflecting a growing focus on this sector[90] Regulatory and Compliance - The company is regulated as a Business Development Company (BDC) under the 1940 Act, which imposes specific restrictions on transactions and asset acquisitions[149] - The company is subject to regulatory restrictions under the 1940 Act, which may limit its operational flexibility compared to competitors[113] - The company is required to maintain asset coverage ratios to allow for dividend distributions or share repurchases while senior securities remain outstanding[167] - The company must maintain a bond for protection against larceny and embezzlement as part of its BDC obligations[172] - The company is required to designate a chief compliance officer and implement policies to prevent violations of federal securities laws[173] Taxation and Distribution - The company intends to qualify as a RIC and must distribute at least 90% of its investment company taxable income to avoid federal income tax[182] - The company may face a 4% excise tax on undistributed income unless it meets specific distribution requirements[184] - The company is not permitted to make distributions while debt obligations are outstanding unless asset coverage tests are met[189] Interest Rate and Market Risks - The company is subject to financial market risks, including valuation risk, interest rate risk, currency risk, credit risk, and inflation risk[897] - As of December 31, 2024, 96.4% of the company's debt investments based on fair value were floating rates, with a weighted average floor of 0.8%[901] - The company may realize gains or losses from liquidations of investments to meet distribution requirements, potentially leading to larger capital gain distributions[191] - The company may utilize hedging instruments such as interest rate swaps, futures, options, and forward contracts to mitigate exposure to interest rate fluctuations[904] - Currency investments and borrowings expose the company to foreign exchange rate movements, with potential hedging strategies including forward contracts and cross currency swaps[905] - Persistent inflationary pressures are expected to affect the profit margins of the company's portfolio companies in the near to medium-term[908]

Wall Street analysts expect Blue Owl Capital Corporation (OBDC) to post quarterly earnings of $0.47 per share in its upcoming report, which indicates a year-over-year decline of 7.8%. Revenues are expected to be $395.59 million, down 3.8% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Before a company reveals its earnings, it is ...

Business development company Blue Owl Capital Corporation (OBDC) is set to report fourth-quarter 2024 results on Feb. 19, 2025, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at 46 cents per share and the same for revenues is pinned at $395.59 million. See the Zacks Earnings Calendar to stay ahead of market-making news.The fourth-quarter earnings estimate remained stable over the past 60 days. However, the bottom-line prediction indicates a ...

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Blue Owl Capital Corporation due to lower revenues, with a focus on how actual results will compare to estimates [1][3]. Earnings Expectations - The upcoming earnings report is expected to show earnings of $0.46 per share, reflecting a -9.8% change year-over-year, and revenues of $395.59 million, down 3.8% from the previous year [3]. - A positive surprise in earnings could lead to a stock price increase, while a miss may result in a decline [2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate for Blue Owl Capital is higher than the Zacks Consensus Estimate, suggesting a recent bullish sentiment among analysts, resulting in an Earnings ESP of +2.17% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Blue Owl Capital currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Blue Owl Capital was expected to post earnings of $0.48 per share but delivered $0.47, resulting in a -2.08% surprise [12]. - Over the last four quarters, the company has beaten consensus EPS estimates two times [13]. Conclusion - While Blue Owl Capital appears to be a compelling candidate for an earnings beat, other factors should also be considered before making investment decisions [16].