Business development company Blue Owl Capital Corporation OBDC is set to report first-quarter 2025 results on May 7, 2025, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at 43 cents per share, and the same for revenues is pinned at $452.9 million. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The first-quarter earnings estimate remained stable over the past 60 days. However, the bottom-line prediction indicates a year-over-year decline of 8.5%. The Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 13.3%.Zacks Investment Research

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For 2025, the Zacks Consensus Estimate for Blue Owl Capital’s revenues is pegged at $1.9 billion, implying a rise of 17.1% year over year. Meanwhile, the consensus mark for current year EPS is pegged at $1.70, implying a decline of around 10.5% on a year-over-year basis.

Blue Owl Capital beat the consensus estimate in one of the last four quarters, met once and missed twice, with the average surprise being negative 0.5%.

Blue Owl Capital Corporation Price and EPS SurpriseBlue Owl Capital Corporation Price and EPS Surprise

Blue Owl Capital Corporation price-eps-surprise | Blue Owl Capital Corporation Quote

Q1 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 +2.33% 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 Q1 Results?

Our model estimate for net investment income in the first quarter indicates a 9.5% year-over-year decline. Additionally, the company is likely to have experienced elevated netoperating expenses (nearly $250 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. The Zacks Consensus Estimate for controlled affiliated dividend income indicates a 1.5% year-over-year increase, whereas our model estimate predicts a 2.9% growth.

The Zacks Consensus Estimate for non-controlled non-affiliated interest income indicates a 4.9% year-over-year increase, whereas our model estimate predicts a 3.8% growth.

Story Continues

Blue Owl Capital's investment portfolio is expected to have experienced growth in the to-be-reported quarter, driven by robust demand for effective financing solutions. Both the Zacks Consensus Estimate and our model estimates indicate a 1.8% increase in controlled affiliated interest income compared with the same quarter last year.

Also, the Zacks Consensus Estimate for payment-in-kind interest income from non-controlled, non-affiliated investments implies 15.7% year-over-year growth. These are likely to have partially offset the negatives. We expect the supplemental dividend per share to be at 3 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: Ares Capital Corporation ARCC and Bread Financial Holdings BFH.

Ares Capital’s first-quarter 2025 core earnings of 50 cents per share missed the Zacks Consensus Estimate of 54 cents, due to lower portfolio exits and gross commitments. However, an improvement in the total investment income, a fall in expenses, and the company’s robust activities offered some support.

Bread Financial Holdings’ operating income of $2.86 per share for the first quarter of 2025 beat the Zacks Consensus Estimate by 36.2%. Higher general-purpose spending and overall transaction volume benefited the company. However, BFH’s average loans witnessed a 2% year-over-year decline.

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Ares Capital Corporation (ARCC):Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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