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.
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The fourth-quarter earnings estimate remained stable over the past 60 days. However, the bottom-line prediction indicates a year-over-year decline of 9.8%. The Zacks Consensus Estimate for quarterly revenues implies a year-over-year fall of 3.8%.
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For 2024, the Zacks Consensus Estimate for Blue Owl Capital’s revenues is pegged at $1.6 billion, implying a rise of 1% year over year. Meanwhile, the consensus mark for current year EPS is pegged at $1.89, implying a decline of around 2.1% on a year-over-year basis.
Blue Owl Capital beat the consensus estimate in two of the last four quarters and missed twice, with the average surprise being 1.1%.
Blue Owl Capital Corporation Price and EPS Surprise
Blue Owl Capital Corporation price-eps-surprise | Blue Owl Capital Corporation Quote
Q4 Earnings Whispers for Blue Owl Capital
Our proven model predicts a likely earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
OBDC has an Earnings ESP of +2.17% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
What is Shaping Blue Owl Capital’s Q4 Results?
Our model estimate for net investment income in the fourth quarter indicates more than 9% year-over-year decline. Both the consensus mark and our model estimate for non-controlled non-affiliated interest income indicate a nearly 9% year-over-year decline.
Additionally, the company is likely to have experienced elevated net operating expenses (nearly $211 million), due to higher interest expenses and management fees. These, in turn, are anticipated to have trimmed its margins in the to-be-reported quarter.
However, OBDC’s dividend income is expected to have witnessed an uptick due to recurring dividends earned from its equity investments. Both the Zacks Consensus Estimate and our model estimate for controlled affiliated dividend income in the fourth quarter indicate nearly 20% year-over-year growth.
Blue Owl Capital's investment portfolio is expected to have experienced growth in the upcoming quarter, driven by robust demand for effective financing solutions. Our estimations indicate more than 22% increase in controlled affiliated interest income compared with the same-quarter last year.
Also, both the Zacks Consensus Estimate and our model estimate for payment-in-kind interest income from non-controlled, non-affiliated investments imply 11.5% year-over-year growth. These are likely to have partially offset the negatives. We expect the supplemental dividend per share to be at 5 cents.
How Did Other Stocks Perform?
Here are two stocks in the broader Financial - Miscellaneous Services space that have already reported earnings for this quarter: Golub Capital BDC, Inc. GBDC and Ares Capital Corporation ARCC.
Golub Capital reported first-quarter fiscal 2025 adjusted EPS of 39 cents, which missed the Zacks Consensus Estimate by 9.3% and declined sequentially from 47 cents. Over the past four quarters, the company beat consensus EPS estimates just once. Total investment income in first-quarter fiscal 2025 of $220.7 million missed the consensus mark by 2.5%. The figure also fell sequentially from $224.4 million.
Ares Capital’s fourth-quarter 2024 core earnings of 55 cents per share missed the Zacks Consensus Estimate of 58 cents, due to an increase in expenses. However, an improvement in the total investment income and the company’s robust portfolio activities supported the results to some extent.
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