Owl Rock(US:OBDC) ZACKSยท2024-08-08 18:17Core Viewpoint - Blue Owl Capital Corporation reported better-than-expected second-quarter 2024 earnings, driven by growing investment income and strong portfolio performance, despite flat expenses [2][3]. Financial Performance - Earnings per share (EPS) for Q2 2024 was 48 cents, beating the Zacks Consensus Estimate by 1 cent, remaining flat year over year [1]. - Total investment income reached $396.8 million, a 0.6% increase year over year, and exceeded the Zacks Consensus Estimate by 2% [1][2]. - Net investment income increased by 1.3% year over year to $189.1 million, surpassing estimates by 3.3% [3]. - Total expenses remained flat at $205.2 million, higher than the estimated $200.8 million, primarily due to increased interest expenses and management fees [4]. Portfolio and Investments - Blue Owl Capital made total new investment commitments of $3.3 billion across 25 new and 24 existing portfolio companies [3]. - The company ended Q2 with investments in 212 portfolio companies, with an aggregate fair value of $13.3 billion, averaging $62.9 million per investment [3]. Cash and Debt Position - Cash and restricted cash decreased to $380 million from $658.7 million at the end of 2023 [5]. - Total assets rose to $13.9 billion from $13.5 billion at the end of 2023, while debt increased to $7.4 billion from $7.1 billion [5]. Dividend and Share Repurchase - The board declared a third-quarter 2024 dividend of 37 cents per share, payable on or before October 15, 2024, and a supplemental dividend of 6 cents for Q2 2024 [7]. - A new share repurchase plan for 2024 was approved, allowing for up to $150 million in share buybacks, with no repurchases made in Q2 [8]. Merger Agreement - Blue Owl Capital has agreed to merge with Blue Owl Capital Corporation III, with OBDC as the surviving entity, expected to be completed in Q1 2025, aiming for operational savings and enhanced scale [9].