NASDAQ$OCSL
Oaktree Specialty Lending Corporation · Q4 2023 earnings
Q4 2023 earnings · · Investor relations
Briefing
Oaktree Specialty Lending's financial performance for Q4 2023 was announced, revealing a solid quarter and a year of strong earnings growth.
Oaktree Specialty Lending Corporation reported total investment income of $101.9 million, GAAP net investment income of $47.5 million, and adjusted net investment income of $47.8 million for the fourth quarter ended September 30, 2023. The company's net asset value per share was $19.63 as of September 30, 2023. A quarterly cash distribution of $0.55 per share and a special cash distribution of $0.07 per share were declared.
- Total investment income was $101.9 million ($1.32 per share) for the fourth fiscal quarter.
- GAAP net investment income was $47.5 million ($0.62 per share) for the fourth fiscal quarter.
- Adjusted net investment income was $47.8 million ($0.62 per share) for the fourth fiscal quarter.
- A quarterly cash distribution of $0.55 per share and a special cash distribution of $0.07 per share were declared.
Headline financials
Revenue & EPS history
Oaktree · Revenue · Quarterly
$88.7M
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's liquidity and capital resources are sufficient to take advantage of market opportunities in the current economic climate, and the company has additional flexibility and increased investment capacity.
Tailwinds
- Company delivered solid fourth quarter results, culminating a fiscal year defined by strong earnings growth and attractive new deployment activity.
- Record adjusted net investment income for the year, driven by higher base rates that highlighted the power of our predominantly floating rate loan portfolio, as well as our ability to deploy capital at wider spreads.
- ROE of over 12% for the year.
- Merger with Oaktree Strategic Income II, Inc. contributed to record results.
- Strengthened capital structure in August through the issuance of $300 million of notes due 2029, creating additional flexibility and increased investment capacity.
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 conflicts in Ukraine and Israel), natural disasters, pandemics or cybersecurity incidents
- 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 Q4 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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