NASDAQ$OCSL

Oaktree Specialty Lending Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Announced second fiscal quarter 2024 financial results.

Oaktree Specialty Lending Corporation reported a GAAP net investment income of $41.4 million ($0.52 per share) for the second fiscal quarter of 2024, as compared with $44.2 million ($0.57 per share) for the first fiscal quarter of 2024. Total investment income was $94.0 million ($1.18 per share) for the second fiscal quarter of 2024, as compared with $98.0 million ($1.26 per share) for the first fiscal quarter of 2024.

  • Total investment income was $94.0 million ($1.18 per share).
  • GAAP net investment income was $41.4 million ($0.52 per share).
  • Originated $395.6 million of new investment commitments.
  • Declared a quarterly cash distribution of $0.55 per share.

Headline financials

Total Revenue

-$2.5M

Previous: -$1.08M-131.2%
EPS

$0.12

Previous: $0.62-80.6%
NAV per share

$18.72

No prior period
Debt to equity

1.1

No prior period
Net debt to equity

1.02

Previous: 1.14-10.5%
New commitments

$396M

No prior period
Free Cash Flow

$9.34M

Previous: $21.5M-56.6%
Net Income

$9.34M

Previous: $21.5M-56.6%
Operating Income

-$14.6M

Previous: -$14.2M-2.9%
Gross Profit

-$2.5M

Previous: -$1.08M-131.2%
Cash & Equivalents

$125M

Previous: $43.8M+185.8%
Total Assets

$3.3B

Previous: $3.32B-0.6%

Revenue & EPS history

Oaktree · Revenue · Quarterly

-$2.5M

Q2 2024+131.2%vs Q2 2023
Beat estimate in 4 of 14 quarters(29%)
ActualEstimate

Revenue by segment

Oaktree · $60.3M total across 3 segments · Q1 2022

  • Interest income
    $55.5M
  • Dividend income
    $3.92M
  • Fee income
    $912K

Forward guidance

Oaktree Specialty Lending announced a permanent reduction in the base management fee, effective as of July 1, 2024, to an annual rate of 1.00% of total gross assets, including any investment made with borrowings, but excluding cash and cash equivalents, net of all other existing waivers of the base management fee.

Tailwinds

  • Reduction in base management fee enhances earnings power.
  • Shift in investment composition toward first lien loans.
  • Strong portfolio activity in fiscal second quarter.
  • Identified and sourced $396 million of new investment commitments.
  • Realized $323 million of repayments and sales, including $109 million of junior positions.

Headwinds

  • Uncertainties associated with changes in the economy, financial markets and political environment.
  • Risks associated with possible disruption in the operations of the Company or the economy generally due to terrorism, war or other geopolitical conflict.
  • Future changes in laws or regulations.
  • Conditions in the Company’s operating areas, particularly with respect to business development companies or regulated investment companies.
  • Impacts of inflation and elevated interest rates.

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 2024

Historical avgQ2 2024

-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

Earnings price reactions
QuarterReport dateReaction (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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