Ares Capital Co. (NASDAQ:ARCC) Expected to Post Earnings of $0.39 Per Share

Wall Street analysts predict that Ares Capital Co. (NASDAQ:ARCC) will post earnings of $0.39 per share for the current fiscal quarter, Zacks reports. Six analysts have provided estimates for Ares Capital’s earnings. The lowest EPS estimate is $0.37 and the highest is $0.40. Ares Capital posted earnings of $0.48 per share during the same quarter last year, which suggests a negative year over year growth rate of 18.8%. The business is expected to report its next quarterly earnings results on Wednesday, November 4th.

According to Zacks, analysts expect that Ares Capital will report full year earnings of $1.58 per share for the current financial year, with EPS estimates ranging from $1.56 to $1.62. For the next fiscal year, analysts anticipate that the company will report earnings of $1.62 per share, with EPS estimates ranging from $1.43 to $1.69. Zacks’ EPS calculations are an average based on a survey of sell-side analysts that that provide coverage for Ares Capital.

Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings results on Tuesday, August 4th. The investment management company reported $0.39 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.38 by $0.01. The company had revenue of $350.00 million for the quarter, compared to the consensus estimate of $353.26 million. Ares Capital had a return on equity of 10.45% and a net margin of 2.95%. The firm’s revenue was down 8.4% compared to the same quarter last year. During the same period last year, the business posted $0.47 earnings per share.

Several equities research analysts have recently issued reports on ARCC shares. BidaskClub downgraded Ares Capital from a “hold” rating to a “sell” rating in a research report on Thursday, August 20th. Zacks Investment Research raised Ares Capital from a “hold” rating to a “buy” rating and set a $15.00 price target on the stock in a research report on Tuesday, July 14th. Oppenheimer initiated coverage on Ares Capital in a research report on Tuesday, August 4th. They set a “buy” rating and a $16.00 target price on the stock. Citigroup lifted their target price on Ares Capital from $15.00 to $17.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Finally, JMP Securities lifted their target price on Ares Capital from $15.00 to $15.50 and gave the stock a “market outperform” rating in a research report on Wednesday, June 17th. Two investment analysts have rated the stock with a sell rating and ten have issued a buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus target price of $16.22.

In other news, insider Michael Lewis Smith bought 35,000 shares of the business’s stock in a transaction dated Monday, September 14th. The stock was bought at an average price of $14.25 per share, for a total transaction of $498,750.00. Following the completion of the purchase, the insider now owns 151,012 shares of the company’s stock, valued at approximately $2,151,921. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Robert L. Rosen bought 5,000 shares of the business’s stock in a transaction dated Wednesday, August 19th. The stock was purchased at an average price of $14.17 per share, with a total value of $70,850.00. The disclosure for this purchase can be found here. Insiders have acquired 50,500 shares of company stock worth $719,480 over the last ninety days. Company insiders own 0.60% of the company’s stock.

Several large investors have recently bought and sold shares of the company. Legal & General Group Plc raised its holdings in Ares Capital by 8.8% in the 1st quarter. Legal & General Group Plc now owns 2,760,882 shares of the investment management company’s stock worth $29,776,000 after purchasing an additional 222,276 shares in the last quarter. UBS Group AG boosted its position in Ares Capital by 16.1% in the second quarter. UBS Group AG now owns 2,511,433 shares of the investment management company’s stock valued at $36,290,000 after buying an additional 347,363 shares during the last quarter. 1832 Asset Management L.P. boosted its position in Ares Capital by 5.0% in the first quarter. 1832 Asset Management L.P. now owns 1,900,523 shares of the investment management company’s stock valued at $20,362,000 after buying an additional 90,400 shares during the last quarter. LGT Capital Partners LTD. boosted its position in Ares Capital by 6.9% in the second quarter. LGT Capital Partners LTD. now owns 1,833,000 shares of the investment management company’s stock valued at $26,487,000 after buying an additional 118,000 shares during the last quarter. Finally, Stephens Inc. AR boosted its position in Ares Capital by 1,105.7% in the second quarter. Stephens Inc. AR now owns 1,658,147 shares of the investment management company’s stock valued at $23,960,000 after buying an additional 1,520,623 shares during the last quarter. Institutional investors own 32.06% of the company’s stock.

Shares of NASDAQ:ARCC traded up $0.06 during midday trading on Thursday, hitting $13.76. The company’s stock had a trading volume of 39,735 shares, compared to its average volume of 3,315,941. The stock has a market capitalization of $5.79 billion, a price-to-earnings ratio of 113.92 and a beta of 1.15. The stock’s 50 day simple moving average is $14.42 and its 200 day simple moving average is $13.79. Ares Capital has a fifty-two week low of $7.90 and a fifty-two week high of $19.33. The company has a debt-to-equity ratio of 1.11, a quick ratio of 1.54 and a current ratio of 1.54.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be issued a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 11.63%. The ex-dividend date of this dividend is Monday, September 14th. Ares Capital’s payout ratio is 84.66%.

Ares Capital Company Profile

Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.

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Earnings History and Estimates for Ares Capital (NASDAQ:ARCC)

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