What To Expect From Oaktree Specialty Lending’s (OCSL) Q3 Earnings

Business development company Oaktree Specialty Lending (NASDAQ:OCSL) will be reporting results this Tuesday before the bell. Here’s what you need to know.

Oaktree Specialty Lending missed analysts’ revenue expectations by 4.6% last quarter, reporting revenues of $75.27 million, down 20.7% year on year. It was a disappointing quarter for the company, with and a miss of analysts’ revenue estimates.

Is Oaktree Specialty Lending a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Oaktree Specialty Lending’s revenue to decline 19.2% year on year to $76.49 million, a further deceleration from the 7.1% decrease it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.

Looking at Oaktree Specialty Lending’s peers in the specialty finance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Encore Capital Group delivered year-on-year revenue growth of 25.4%, beating analysts’ expectations by 11.9%, and HA Sustainable Infrastructure Capital reported revenues up 51.5%, topping estimates by 58.5%. Encore Capital Group traded up 10.5% following the results while HA Sustainable Infrastructure Capital was also up 12.2%.

Read our full analysis of Encore Capital Group’s results here and HA Sustainable Infrastructure Capital’s results here.

Investors in the specialty finance segment have had fairly steady hands going into earnings, with share prices down 1.5% on average over the last month. Oaktree Specialty Lending is up 4% during the same time.

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