Zacks: Analysts Expect Ares Capital Co. (ARCC) Will Post Earnings of $0.37 Per Share

Analysts expect Ares Capital Co. (NASDAQ:ARCC) to announce $0.37 earnings per share (EPS) for the current quarter, Zacks Investment Research reports. Seven analysts have provided estimates for Ares Capital’s earnings, with estimates ranging from $0.33 to $0.39. Ares Capital posted earnings of $0.42 per share in the same quarter last year, which suggests a negative year over year growth rate of 11.9%. The company is scheduled to report its next earnings report on Wednesday, February 28th.

On average, analysts expect that Ares Capital will report full year earnings of $1.39 per share for the current year, with EPS estimates ranging from $1.36 to $1.40. For the next fiscal year, analysts anticipate that the company will report earnings of $1.57 per share, with EPS estimates ranging from $1.49 to $1.65. Zacks’ earnings per share calculations are an average based on a survey of sell-side research firms that cover Ares Capital.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings results on Thursday, November 2nd. The investment management company reported $0.36 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.35 by $0.01. Ares Capital had a net margin of 45.78% and a return on equity of 8.60%. The firm had revenue of $294.00 million for the quarter, compared to the consensus estimate of $295.02 million. During the same quarter in the previous year, the company earned $0.43 earnings per share.

ARCC has been the topic of a number of recent research reports. Citigroup assumed coverage on shares of Ares Capital in a research note on Wednesday, September 20th. They set an “outperform” rating and a $18.00 price target on the stock. Oppenheimer assumed coverage on shares of Ares Capital in a research note on Thursday, September 21st. They issued an “outperform” rating and a $18.00 target price on the stock. CIBC assumed coverage on shares of Ares Capital in a research note on Thursday, September 21st. They issued an “outperform” rating and a $18.00 target price on the stock. Zacks Investment Research downgraded shares of Ares Capital from a “hold” rating to a “sell” rating in a research note on Tuesday, October 3rd. Finally, Keefe, Bruyette & Woods set a $19.00 target price on shares of Ares Capital and gave the company a “buy” rating in a research note on Friday, October 6th. Two investment analysts have rated the stock with a sell rating, two have given a hold rating and ten have issued a buy rating to the company’s stock. The stock has an average rating of “Buy” and an average price target of $18.00.

Ares Capital (NASDAQ:ARCC) traded down $0.01 on Thursday, reaching $15.80. 1,550,898 shares of the company’s stock were exchanged, compared to its average volume of 2,167,988. Ares Capital has a 1 year low of $15.60 and a 1 year high of $17.87. The company has a debt-to-equity ratio of 0.66, a current ratio of 1.29 and a quick ratio of 1.29. The firm has a market capitalization of $6,739.79, a P/E ratio of 12.44, a P/E/G ratio of 3.82 and a beta of 0.63.

The company also recently announced a quarterly dividend, which will be paid on Friday, December 29th. Stockholders of record on Friday, December 15th will be paid a $0.38 dividend. The ex-dividend date of this dividend is Thursday, December 14th. This represents a $1.52 annualized dividend and a dividend yield of 9.62%. Ares Capital’s dividend payout ratio is presently 119.69%.

In related news, Director Michael J. Arougheti purchased 8,365 shares of Ares Capital stock in a transaction that occurred on Friday, November 3rd. The shares were acquired at an average price of $15.85 per share, for a total transaction of $132,585.25. Following the transaction, the director now directly owns 937,054 shares in the company, valued at $14,852,305.90. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders bought a total of 9,165 shares of company stock worth $145,469 in the last 90 days. 0.45% of the stock is owned by corporate insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of ARCC. Penserra Capital Management LLC lifted its position in Ares Capital by 8.9% during the 2nd quarter. Penserra Capital Management LLC now owns 6,439 shares of the investment management company’s stock worth $105,000 after buying an additional 526 shares in the last quarter. Hudock Capital Group LLC lifted its position in Ares Capital by 3.2% during the 2nd quarter. Hudock Capital Group LLC now owns 6,500 shares of the investment management company’s stock worth $106,000 after buying an additional 200 shares in the last quarter. Ffcm LLC lifted its position in Ares Capital by 218.9% during the 2nd quarter. Ffcm LLC now owns 6,840 shares of the investment management company’s stock worth $113,000 after buying an additional 4,695 shares in the last quarter. Legacy Advisors LLC acquired a new position in Ares Capital during the 3rd quarter worth about $128,000. Finally, Joel Isaacson & Co. LLC acquired a new position in Ares Capital during the 3rd quarter worth about $164,000. Institutional investors and hedge funds own 43.60% of the company’s stock.

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Ares Capital Company Profile

Ares Capital Corporation is a specialty finance company. The Company operates as a closed-end, non-diversified management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. It invests primarily in the United States middle-market companies.

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

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