Owl Rock(US:OBDC) ZACKSยท2024-11-07 17:56Core Viewpoint - Blue Owl Capital Corporation reported weaker-than-expected third-quarter 2024 earnings, primarily due to increased expenses and lower interest income from non-controlled investments, despite a slight increase in total investment income [1][2]. Financial Performance - Earnings per share (EPS) for Q3 2024 was 47 cents, missing the Zacks Consensus Estimate by 1 cent and declining by 2 cents year-over-year [1]. - Total investment income reached $406.03 million, reflecting a year-over-year increase of 1.8% and surpassing the Zacks Consensus Estimate by 1.6% [1]. - Net investment income decreased by 2.7% year-over-year to $184.9 million, falling short of the estimate of $188.9 million [3]. - The company recorded a net income of $135.4 million in Q3 2024, down from $206.9 million in the same period last year [5]. Investment and Portfolio - Blue Owl Capital had total new investment commitments of $1.2 billion across 23 new portfolio companies and 14 existing ones [3]. - As of September 30, 2024, the company had investments in 219 portfolio companies with an aggregate fair value of $13.4 billion, resulting in an average investment size of $61.4 million per company [4]. Expenses and Cash Flow - Total expenses increased by 5.5% year-over-year to $217.6 million, exceeding the estimate of $208.9 million, driven by higher interest expenses, management fees, and general administrative expenses [4]. - Net cash used in operating activities for the first nine months of 2024 was $285.74 million, compared to $721.75 million in the prior year [7]. Balance Sheet and Debt - The company ended Q3 2024 with a cash balance of $481.3 million, down from $658.7 million at the end of 2023 [6]. - Total assets rose to $14.09 billion from $13.51 billion at the end of 2023, while debt increased to $7.74 billion from $7.08 billion [6]. Dividend and Share Repurchase - The board declared a fourth-quarter 2024 dividend of 37 cents per share, payable on or before January 15, 2025, and a supplemental dividend of 5 cents per share for Q3 2024 [8]. - A new share repurchase plan for 2024 was approved, allowing for the purchase of up to $150 million in shares, although no repurchases were made in Q3 [9].