Oaktree Specialty Lending's Q4 profit misses expectations

Reuters11-18
Oaktree Specialty Lending's Q4 profit misses expectations

Overview

  • Oaktree fiscal Q4 adjusted EPS misses analyst expectations

  • Total investment income for fiscal Q4 increased due to higher prepayment fees and dividend income

  • Company declares quarterly cash distribution of $0.40 per share

Outlook

  • Company remains disciplined in underwriting amid uncertain outlook

  • Company did not provide specific financial guidance for future periods

Result Drivers

  • HIGHER PREPAYMENT FEES - Increase in Q4 investment income driven by higher prepayment fees

  • LOWER INTEREST INCOME - Full year decline in investment income due to lower reference rates and tightening spreads

  • DIVIDEND INCOME DECLINE - Reduced dividend income from investment in SLF JV I contributed to lower annual investment income

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Adjusted EPS

Miss

$0.28

$0.39 (6 Analysts)

Q4 Investment Income per Share

$0.88

Q4 Adjusted Net Income

Miss

$24.50 mln

$34.97 mln (5 Analysts)

Q4 Fee Income

$2.12 mln

Q4 Investment Income Before Tax

$36.07 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the closed end funds peer group is "buy."

  • Wall Street's median 12-month price target for Oaktree Specialty Lending Corp is $13.50, about 1.3% above its November 17 closing price of $13.33

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nBw6QtLYJa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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