NASDAQ$OCSL
Oaktree Specialty Lending Corporation · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Announced financial results for the second fiscal quarter and declared a distribution of $0.55 per share.
Oaktree Specialty Lending Corporation reported strong results in the second fiscal quarter, driven by solid adjusted net investment income generated from wider spreads on new originations and the impact of higher base rates on its predominantly floating rate loan portfolio. The company also completed its merger with OSI2 on January 23, 2023, adding $572.1 million of investments at fair value.
- Total investment income was $96.3 million ($1.32 per share) for the second fiscal quarter of 2023, as compared with $79.2 million ($1.30 per share) for the first fiscal quarter of 2023.
- GAAP net investment income was $46.0 million ($0.63 per share) for the second fiscal quarter of 2023, as compared with $38.8 million ($0.63 per share) for the first fiscal quarter of 2023.
- Net asset value (“NAV”) per share was $19.66 as of March 31, 2023, up slightly as compared with $19.63 as of December 31, 2022.
- Completed the OSI2 Merger on January 23, 2023, which added $572.1 million of investments at fair value.
Headline financials
Revenue & EPS history
Oaktree · Revenue · Quarterly
-$1.08M
Revenue by segment
Oaktree · $60.3M total across 3 segments · Q1 2022
- Interest income$55.5M—92.0%
- Dividend income$3.92M—6.5%
- Fee income$912K—1.5%
Forward guidance
OCSL is positioned to sustain its momentum in the future.
Tailwinds
- OCSL achieved strong results in the second fiscal quarter, driven by solid adjusted net investment income generated from wider spreads on new originations and the impact of higher base rates on our predominantly floating rate loan portfolio.
- We also continued our strategy of rotating out of public debt investments and redeploying capital into our robust pipeline of compelling and higher-yielding private credit opportunities.
- Moreover, we were delighted to successfully close our merger with OSI2 on January 23, 2023, which marked another significant highlight of the quarter.
- We are excited to leverage the benefits of the combined company, which we believe will generate substantial long-term value for our shareholders.
- These positive results underscore our commitment to delivering strong risk-adjusted returns
Headwinds
- Changes in the economy, financial markets and political environment, including the impacts of inflation and rising interest rates
- Risks associated with possible disruption in the operations of the Company or the economy generally due to terrorism, war or other geopolitical conflict (including the current conflict between Russia and Ukraine), natural disasters or pandemics
- Future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities)
- Conditions in the Company’s operating areas, particularly with respect to business development companies or regulated investment companies
- Other considerations that may be disclosed from time to time in the Company’s publicly disseminated documents and filings.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 18 quarterly earnings reports · overlaid with Q2 2023
-1.4%
Avg return
Earnings day
-2.0%
Avg return
5 days after
-2.6%
Avg return
30 days after
33%
6 / 18 earnings
Positive
+7.3%
Q4 2022
Best reaction
-8.4%
Q3 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q2 2026 | +0.4% | -5.8% | -5.3% | |
| Q1 2026 | +3.0% | +2.0% | -5.6% | |
| Q4 2025 | +0.0% | +1.1% | -3.8% | |
| Q2 2025 | -7.8% | -6.7% | +1.6% | |
| Q1 2025 | -2.8% | -2.9% | +0.2% | |
| Q4 2024 | -2.9% | -1.9% | -6.0% | |
| Q3 2024 | -8.4% | -10.6% | -5.0% | |
| Q2 2024 | -1.9% | -2.9% | -1.9% | |
| Q1 2024 | -6.9% | -7.2% | -7.1% | |
| Q4 2023 | +0.5% | +0.4% | +1.4% | |
| Q3 2023 | -1.7% | -0.8% | -1.4% | |
| Q2 2023 | -2.4% | -0.7% | +1.3% | |
| Q1 2023 | -1.6% | -1.7% | -4.4% | |
| Q4 2022 | +7.3% | +7.9% | +2.4% | |
| Q3 2022 | -0.8% | -1.1% | -4.3% | |
| Q2 2022 | -1.5% | -4.5% | -5.4% | |
| Q1 2022 | +1.1% | +0.0% | -2.4% | |
| Q4 2021 | +1.3% | -0.8% | -1.3% |
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