Wall Street brokerages predict that Ares Capital Co. (NASDAQ:ARCC) will announce earnings of $0.39 per share for the current fiscal quarter, according to Zacks Investment Research. Seven analysts have provided estimates for Ares Capital’s earnings. The lowest EPS estimate is $0.38 and the highest is $0.41. Ares Capital posted earnings per share of $0.34 during the same quarter last year, which indicates a positive year-over-year growth rate of 14.7%. The business is scheduled to announce its next earnings report on Wednesday, August 1st.
On average, analysts expect that Ares Capital will report full-year earnings of $1.60 per share for the current fiscal year, with EPS estimates ranging from $1.56 to $1.69. For the next fiscal year, analysts forecast that the business will post earnings of $1.65 per share, with EPS estimates ranging from $1.52 to $1.81. Zacks Investment Research’s earnings per share averages are a mean average based on a survey of research analysts that follow Ares Capital.
Ares Capital (NASDAQ:ARCC) last released its quarterly earnings results on Wednesday, May 2nd. The investment management company reported $0.39 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.37 by $0.02. Ares Capital had a return on equity of 8.80% and a net margin of 65.81%. The firm had revenue of $317.00 million for the quarter, compared to the consensus estimate of $309.81 million. During the same quarter last year, the business posted $0.28 EPS. The company’s revenue for the quarter was up 15.3% on a year-over-year basis.
Several research firms have issued reports on ARCC. JMP Securities lifted their price target on Ares Capital from $18.00 to $18.50 and gave the company a “market outperform” rating in a research note on Monday, June 4th. BidaskClub downgraded Ares Capital from a “hold” rating to a “sell” rating in a research note on Wednesday. National Securities reissued a “buy” rating and issued a $19.00 price target on shares of Ares Capital in a research note on Tuesday, May 15th. Zacks Investment Research downgraded Ares Capital from a “buy” rating to a “hold” rating in a research note on Thursday, May 3rd. Finally, Oppenheimer set a $18.00 price target on Ares Capital and gave the company a “buy” rating in a research note on Thursday, May 3rd. One research analyst has rated the stock with a sell rating, three have given a hold rating and ten have assigned a buy rating to the company. The company currently has a consensus rating of “Buy” and an average price target of $17.96.
Shares of ARCC traded down $0.16 during midday trading on Friday, hitting $16.73. The stock had a trading volume of 127,538 shares, compared to its average volume of 2,032,096. Ares Capital has a twelve month low of $15.03 and a twelve month high of $17.11. The company has a market capitalization of $7.25 billion, a price-to-earnings ratio of 12.04, a P/E/G ratio of 3.57 and a beta of 0.61. The company has a debt-to-equity ratio of 0.71, a current ratio of 0.99 and a quick ratio of 0.99.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 29th. Stockholders of record on Friday, June 15th will be issued a $0.38 dividend. This represents a $1.52 annualized dividend and a dividend yield of 9.09%. The ex-dividend date is Thursday, June 14th. Ares Capital’s payout ratio is 109.35%.
Hedge funds and other institutional investors have recently made changes to their positions in the company. Bessemer Group Inc. grew its holdings in shares of Ares Capital by 14,542.3% in the 4th quarter. Bessemer Group Inc. now owns 7,614 shares of the investment management company’s stock valued at $120,000 after acquiring an additional 7,562 shares in the last quarter. McKinley Carter Wealth Services Inc. bought a new position in shares of Ares Capital in the 1st quarter valued at about $159,000. Quad Cities Investment Group LLC bought a new position in shares of Ares Capital in the 1st quarter valued at about $162,000. Hyman Charles D bought a new position in shares of Ares Capital in the 1st quarter valued at about $167,000. Finally, Csenge Advisory Group bought a new position in shares of Ares Capital in the 4th quarter valued at about $169,000. Institutional investors own 41.37% of the company’s stock.
About Ares Capital
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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