Brokerages Anticipate Ares Capital Co. (ARCC) Will Post Quarterly Sales of $336.39 Million
Wall Street brokerages expect that Ares Capital Co. (NASDAQ:ARCC) will report sales of $336.39 million for the current fiscal quarter, according to Zacks Investment Research. Seven analysts have made estimates for Ares Capital’s earnings, with the lowest sales estimate coming in at $326.97 million and the highest estimate coming in at $347.95 million. Ares Capital posted sales of $317.00 million during the same quarter last year, which suggests a positive year-over-year growth rate of 6.1%. The company is expected to issue its next quarterly earnings report on Wednesday, May 1st.
On average, analysts expect that Ares Capital will report full-year sales of $1.39 billion for the current fiscal year, with estimates ranging from $1.34 billion to $1.48 billion. For the next year, analysts forecast that the company will post sales of $1.49 billion, with estimates ranging from $1.40 billion to $1.58 billion. Zacks Investment Research’s sales averages are an average based on a survey of research firms that cover Ares Capital.
Ares Capital (NASDAQ:ARCC) last announced its quarterly earnings data on Tuesday, February 12th. The investment management company reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.04. The firm had revenue of $345.00 million during the quarter, compared to the consensus estimate of $327.24 million. Ares Capital had a return on equity of 9.69% and a net margin of 64.17%. During the same period in the prior year, the business earned $0.38 EPS.
Ares Capital stock traded up $0.12 during mid-day trading on Thursday, hitting $17.12. The company’s stock had a trading volume of 1,582,275 shares, compared to its average volume of 2,186,291. The company has a market cap of $7.30 billion, a P/E ratio of 10.19, a P/E/G ratio of 3.31 and a beta of 0.64. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.71. Ares Capital has a 52-week low of $14.50 and a 52-week high of $17.63.
The company also recently announced a quarterly dividend, which will be paid on Friday, March 29th. Shareholders of record on Friday, March 15th will be given a $0.40 dividend. This is a positive change from Ares Capital’s previous quarterly dividend of $0.39. This represents a $1.60 annualized dividend and a yield of 9.35%. The ex-dividend date of this dividend is Thursday, March 14th. Ares Capital’s dividend payout ratio is presently 95.24%.
A number of hedge funds have recently modified their holdings of the business. Thornburg Investment Management Inc. increased its position in Ares Capital by 4.1% in the 4th quarter. Thornburg Investment Management Inc. now owns 15,884,489 shares of the investment management company’s stock worth $247,480,000 after purchasing an additional 632,655 shares during the last quarter. Vaughan Nelson Investment Management L.P. increased its holdings in shares of Ares Capital by 7.9% during the 4th quarter. Vaughan Nelson Investment Management L.P. now owns 6,437,206 shares of the investment management company’s stock valued at $100,292,000 after acquiring an additional 472,555 shares during the last quarter. Confluence Investment Management LLC increased its holdings in shares of Ares Capital by 0.7% during the 4th quarter. Confluence Investment Management LLC now owns 5,192,058 shares of the investment management company’s stock valued at $80,892,000 after acquiring an additional 37,132 shares during the last quarter. D. E. Shaw & Co. Inc. increased its holdings in shares of Ares Capital by 1.3% during the 4th quarter. D. E. Shaw & Co. Inc. now owns 3,766,419 shares of the investment management company’s stock valued at $58,681,000 after acquiring an additional 49,731 shares during the last quarter. Finally, OMERS ADMINISTRATION Corp increased its holdings in shares of Ares Capital by 10.1% during the 4th quarter. OMERS ADMINISTRATION Corp now owns 3,091,499 shares of the investment management company’s stock valued at $48,166,000 after acquiring an additional 283,401 shares during the last quarter. 39.26% of the stock is currently owned by institutional investors.
About Ares Capital
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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