Oaktree Specialty Lending (OCSL) came out with quarterly earnings of $0.55 per share, missing the Zacks Consensus Estimate of $0.56 per share. This compares to earnings of $0.62 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.79%. A quarter ago, it was expected that this specialty finance company would post earnings of $0.57 per share when it actually produced earnings of $0.55, delivering a surprise of -3.51%.Over the last ...

LOS ANGELES, CA, Nov. 19, 2024 (GLOBE NEWSWIRE) -- Oaktree Specialty Lending Corporation (NASDAQ: OCSL) (“Oaktree Specialty Lending” or the “Company”), a specialty finance company, today announced its financial results for the fiscal quarter and year ended September 30, 2024. Financial Highlights for the Quarter and Year Ended September 30, 2024   Total investment income was $94.7 million ($1.15 per share) and $381.7 million ($4.75 per share) for the fourth fiscal quarter of 2024 and full year, as compared ...

Oaktree Specialty Lending (NASDAQ: OCSL ) is a business development company (entity providing financing for businesses struggling to acquire banking or public financing) that concentrates on debt investments provided to various industries, focusing on the application software space. As of June 30, 2024, the Company had 158Welcome to Cash Flow Venue, where dividends do the heavy lifting! Blending my financial chops with the timeless wisdom of value investing (and love for steady income), I’ve built a rock-so ...

Core Viewpoint - Oaktree Specialty Lending Corporation will report its financial results for the fourth fiscal quarter and full year ended September 30, 2024, on November 19, 2024, before the market opens [1] Group 1: Financial Reporting - The financial results will be discussed in a conference call scheduled for November 19, 2024, at 11:00 a.m. Eastern Time [1] - Access to the conference call will be available via phone or through a live webcast on the company's website [1] Group 2: Company Overview - Oaktree Specialty Lending Corporation is a specialty finance company focused on providing customized credit solutions to companies with limited access to capital markets [3] - The company's investment objective includes generating current income and capital appreciation through various financing solutions such as first and second lien loans, unsecured and mezzanine loans, and preferred equity [3] - The company is regulated as a business development company under the Investment Company Act of 1940 and is managed by Oaktree Fund Advisors, LLC, an affiliate of Oaktree Capital Management, L.P. [3]

Group 1 - Business Development Companies (BDCs) are favored by income-focused investors due to their high yields [1] - BDCs operate similarly to banks, primarily lending to the less liquid middle-market corporate debt market, which typically offers high yields [1] - Some BDCs utilize leverage to enhance their returns [1] Group 2 - The analyst, Harrison, has been writing on Seeking Alpha since 2018 and has over a decade of market experience [1] - Harrison's professional background includes private equity, real estate, and economic research [1] - He possesses an academic foundation in financial econometrics, economic forecasting, and global monetary economics [1]

Core Viewpoint - Oaktree Specialty Lending is facing increased selling pressure due to loan performance issues, leading to a significant rise in the non-accrual percentage, but the company is focusing on a first lien strategy to strengthen its portfolio while maintaining its dividend with net investment income [1][3][12]. Loan Performance Issues - The non-accrual percentage for Oaktree Specialty Lending reached 3.7% in the June quarter, reflecting a 1.3 percentage point increase quarter-over-quarter, with eight debt investments classified as non-performing [6][8]. - The company made $302 million in new first lien investments and $3 million in second lien commitments during the third fiscal quarter, with a total of 85% of investments focused on first and second lien debt [4][6]. Dividend Sustainability - Oaktree Specialty Lending generated $0.55 per share in adjusted net investment income, which was sufficient to cover its $0.55 per share dividend, resulting in a distribution coverage ratio of 100% for Q3'24, down from 102% in the previous quarter [8][10]. - Management has adjusted the base management fee structure, reducing it from 1.50% to 1.00%, which is expected to add $0.03-$0.04 per share each quarter to net investment income, providing a cushion for the dividend [11][15]. Valuation and Market Position - The company is currently trading at a price-to-NAV ratio of 0.92X, below its long-term average of 1.02X, indicating a potential opportunity for income investors [12][15]. - If Oaktree Specialty Lending can avoid further deterioration in its balance sheet and loan quality, it could revalue to net asset value within the next twelve months, suggesting an 8% upside potential [12][15].

For the quarter ended June 2024, Oaktree Specialty Lending (OCSL) reported revenue of $94.97 million, down 6.8% over the same period last year. EPS came in at $0.55, compared to $0.62 in the year-ago quarter. The reported revenue represents a surprise of -4.41% over the Zacks Consensus Estimate of $99.35 million. With the consensus EPS estimate being $0.57, the EPS surprise was -3.51%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations t ...

Oaktree Specialty Lending (OCSL) came out with quarterly earnings of $0.55 per share, missing the Zacks Consensus Estimate of $0.57 per share. This compares to earnings of $0.62 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -3.51%. A quarter ago, it was expected that this specialty finance company would post earnings of $0.57 per share when it actually produced earnings of $0.56, delivering a surprise of -1.75%. Over the la ...

Core Viewpoint Oaktree Specialty Lending Corporation reported its financial results for the fiscal quarter ended June 30, 2024, highlighting a slight increase in total investment income but a decline in net asset value due to unrealized losses on certain investments. The company continues to focus on portfolio growth and improving investment quality despite facing challenges in some portfolio investments. Financial Highlights - Total investment income for the quarter was $95.0 million ($1.16 per share), up from $94.0 million ($1.18 per share) in the previous quarter, driven by higher interest income and original issue discount accretion [2][3] - Adjusted total investment income was $95.6 million ($1.17 per share), down from $97.3 million ($1.22 per share) in the previous quarter, primarily due to lower interest income and a decrease in amendment fees [2][4] - GAAP net investment income increased to $44.6 million ($0.54 per share) from $41.4 million ($0.52 per share) in the previous quarter, attributed to lower incentive fees and higher total investment income [3] - Adjusted net investment income was $45.2 million ($0.55 per share), slightly up from $44.7 million ($0.56 per share) in the previous quarter [4] Asset and Debt Management - Net asset value (NAV) per share decreased to $18.19 as of June 30, 2024, from $18.72 as of March 31, 2024, reflecting unrealized losses on certain investments [5] - Total debt outstanding was $1,740.0 million, with a total debt to equity ratio of 1.16x and a net debt to equity ratio of 1.10x [6][29] - The company originated $338.7 million in new investment commitments during the quarter and received $185.5 million from repayments and sales [6][9] Liquidity Position - As of June 30, 2024, the company had $96.3 million in unrestricted cash and cash equivalents and $827.5 million in undrawn capacity under credit facilities [7][27] - Unfunded investment commitments totaled $291.4 million, with $264.3 million available for immediate drawdown [7][27] Distribution Information - A quarterly cash distribution of $0.55 per share was declared, payable on September 30, 2024, to stockholders of record on September 16, 2024 [8][10] Investment Strategy and Market Outlook - The CEO emphasized a focus on shifting the investment composition towards first lien loans and improving portfolio quality amid market challenges [9] - The company experienced an increase in non-accrual investments, with eight investments on non-accrual status as of June 30, 2024, representing 5.7% of the debt portfolio at cost [21]

Core Viewpoint - Oaktree Specialty Lending Corporation reported its financial results for the fiscal quarter ended June 30, 2024, showing a slight increase in total investment income but a decline in net asset value due to unrealized losses on certain investments [1][2][5]. Financial Highlights - Total investment income for the quarter was $95.0 million ($1.16 per share), up from $94.0 million ($1.18 per share) in the previous quarter, primarily due to higher interest income from portfolio growth [2]. - Adjusted total investment income was $95.6 million ($1.17 per share), down from $97.3 million ($1.22 per share) in the prior quarter, mainly due to lower interest income and a decrease in amendment fees [2][4]. - GAAP net investment income increased to $44.6 million ($0.54 per share) from $41.4 million ($0.52 per share) in the previous quarter, driven by lower incentive fees and higher total investment income [3]. - Adjusted net investment income was $45.2 million ($0.55 per share), slightly up from $44.7 million ($0.56 per share) in the prior quarter [4][15]. Asset and Debt Management - Net asset value (NAV) per share decreased to $18.19 as of June 30, 2024, from $18.72 as of March 31, 2024, reflecting unrealized losses on certain investments [5][13]. - The company originated $338.7 million in new investment commitments and received $185.5 million from repayments and sales during the quarter [6][9]. - Total debt outstanding was $1,740.0 million, with a total debt to equity ratio of 1.16x and a net debt to equity ratio of 1.10x [6][29]. Liquidity Position - As of June 30, 2024, liquidity included $96.3 million in unrestricted cash and $827.5 million in undrawn capacity under credit facilities [7][27]. - Unfunded investment commitments totaled $291.4 million, with $264.3 million available for immediate drawdown [7][28]. Distribution Information - A quarterly cash distribution of $0.55 per share was declared, payable on September 30, 2024, to stockholders of record on September 16, 2024 [8][10]. Portfolio Composition - The investment portfolio at fair value was $3.1 billion, consisting of investments in 158 companies, with 94.9% in debt investments [19][20]. - The weighted average yield on new debt investments was 11.1% [6]. - Non-accrual investments increased to eight, representing 5.7% of the debt portfolio at cost [21].