Owl Rock(US:OBDC) ZACKS·2025-12-05 17:36Core Insights - Blue Owl Capital Corporation reported weaker-than-expected third-quarter results, with adjusted earnings per share (EPS) of 36 cents, missing the Zacks Consensus Estimate by 7.7% and decreasing 23.4% year over year [3] - Total investment income increased by 11.6% year over year to $453.1 million, but still missed the consensus mark by 1.8% [4] - Total expenses rose by 19.5% year over year to $259.9 million, primarily due to higher interest expenses and management fees [6] Financial Performance - Adjusted net investment income was $183.3 million, down 0.9% year over year [5] - New investment commitments totaled $1.3 billion across 13 new portfolio companies and 23 existing ones [5] - The company ended the third quarter with investments in 238 portfolio companies, with an aggregate fair value of $17.1 billion, averaging $72 million per portfolio company [5] Cash and Debt Position - Cash balance decreased to $317.2 million from $505.7 million at the end of 2024 [7] - Total assets increased to $17.6 billion from $13.9 billion at the end of 2024, while debt rose to $9.5 billion from $7.5 billion [7] - Net debt to equity ratio stood at 1.22X [7] Dividend and Share Repurchase - The board declared a regular dividend of 37 cents per share for the third quarter of 2025, with no supplemental dividend announced [9] - A new share repurchase program was announced, allowing for the purchase of up to $200 million in shares over the next 18 months [9] Market Outlook - Estimates for Blue Owl Capital have been trending downward, with a consensus estimate shift of -7.02% [10][11] - The company currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [13] - In comparison, Lazard, a peer in the same industry, has shown a positive performance with a 7.9% gain over the past month and a Zacks Rank 2 (Buy) [14][15]