Brokerages Expect Ares Capital Corporation (ARCC) to Announce $0.35 EPS
Brokerages forecast that Ares Capital Corporation (NASDAQ:ARCC) will post earnings per share (EPS) of $0.35 for the current fiscal quarter, according to Zacks. Six analysts have issued estimates for Ares Capital Corporation’s earnings, with the lowest EPS estimate coming in at $0.33 and the highest estimate coming in at $0.38. Ares Capital Corporation posted earnings of $0.43 per share in the same quarter last year, which would indicate a negative year-over-year growth rate of 18.6%. The firm is expected to report its next earnings results on Wednesday, November 1st.
On average, analysts expect that Ares Capital Corporation will report full year earnings of $1.39 per share for the current fiscal year, with EPS estimates ranging from $1.35 to $1.44. For the next fiscal year, analysts anticipate that the business will report earnings of $1.62 per share, with EPS estimates ranging from $1.54 to $1.71. Zacks Investment Research’s EPS calculations are a mean average based on a survey of sell-side research analysts that that provide coverage for Ares Capital Corporation.
Ares Capital Corporation (NASDAQ:ARCC) last released its earnings results on Wednesday, August 2nd. The investment management company reported $0.34 EPS for the quarter, missing the Zacks’ consensus estimate of $0.36 by $0.02. Ares Capital Corporation had a return on equity of 8.95% and a net margin of 44.61%. The firm had revenue of $284 million for the quarter, compared to analyst estimates of $297.77 million. During the same period last year, the firm earned $0.50 EPS.
A number of equities analysts have recently weighed in on ARCC shares. Janney Montgomery Scott reaffirmed a “neutral” rating on shares of Ares Capital Corporation in a research note on Friday, May 5th. National Securities raised shares of Ares Capital Corporation from a “neutral” rating to a “buy” rating and upped their price target for the stock from $18.00 to $19.00 in a research note on Monday, May 8th. BMO Capital Markets reaffirmed a “hold” rating and issued a $15.00 price target on shares of Ares Capital Corporation in a research note on Thursday, June 1st. Keefe, Bruyette & Woods reaffirmed a “buy” rating and issued a $18.50 price target on shares of Ares Capital Corporation in a research note on Friday, June 16th. Finally, TheStreet downgraded shares of Ares Capital Corporation from a “b” rating to a “c+” rating in a research note on Wednesday, June 14th. Two analysts have rated the stock with a sell rating, two have issued a hold rating and seven have assigned a buy rating to the company. The company has a consensus rating of “Hold” and a consensus price target of $18.06.
A number of institutional investors have recently bought and sold shares of ARCC. Wellington Shields Capital Management LLC acquired a new position in Ares Capital Corporation during the first quarter valued at approximately $244,000. US Bancorp DE increased its position in Ares Capital Corporation by 0.8% in the first quarter. US Bancorp DE now owns 53,037 shares of the investment management company’s stock valued at $921,000 after buying an additional 433 shares during the last quarter. Pekin Singer Strauss Asset Management IL increased its position in Ares Capital Corporation by 1.2% in the first quarter. Pekin Singer Strauss Asset Management IL now owns 37,850 shares of the investment management company’s stock valued at $658,000 after buying an additional 450 shares during the last quarter. TIAA CREF Trust Co. FSB MO acquired a new position in Ares Capital Corporation during the first quarter valued at approximately $1,035,000. Finally, Sheaff Brock Investment Advisors LLC increased its position in Ares Capital Corporation by 6.5% in the first quarter. Sheaff Brock Investment Advisors LLC now owns 84,660 shares of the investment management company’s stock valued at $1,471,000 after buying an additional 5,137 shares during the last quarter. 45.86% of the stock is currently owned by hedge funds and other institutional investors.
Ares Capital Corporation (NASDAQ:ARCC) traded down 0.19% during midday trading on Wednesday, hitting $16.13. The company had a trading volume of 939,099 shares. Ares Capital Corporation has a 12 month low of $15.01 and a 12 month high of $17.87. The firm has a 50-day moving average price of $16.30 and a 200-day moving average price of $16.88.
The firm also recently announced a quarterly dividend, which will be paid on Friday, September 29th. Shareholders of record on Friday, September 15th will be given a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a yield of 9.42%. The ex-dividend date of this dividend is Thursday, September 14th. Ares Capital Corporation’s payout ratio is 117.83%.
Ares Capital Corporation 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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