Ares Capital Co. (ARCC) Expected to Post Quarterly Sales of $323.42 Million

Brokerages expect Ares Capital Co. (NASDAQ:ARCC) to post $323.42 million in sales for the current fiscal quarter, according to Zacks Investment Research. Seven analysts have provided estimates for Ares Capital’s earnings, with the highest sales estimate coming in at $331.56 million and the lowest estimate coming in at $315.01 million. Ares Capital posted sales of $284.00 million during the same quarter last year, which suggests a positive year-over-year growth rate of 13.9%. The company is scheduled to announce its next earnings report on Wednesday, August 1st.

According to Zacks, analysts expect that Ares Capital will report full year sales of $1.31 billion for the current financial year, with estimates ranging from $1.27 billion to $1.34 billion. For the next financial year, analysts expect that the business will report sales of $1.37 billion per share, with estimates ranging from $1.27 billion to $1.45 billion. Zacks Investment Research’s sales averages are a mean average based on a survey of sell-side analysts that follow Ares Capital.

Ares Capital (NASDAQ:ARCC) last posted its quarterly earnings results on Wednesday, May 2nd. The investment management company reported $0.39 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.37 by $0.02. The business had revenue of $317.00 million during the quarter, compared to analysts’ expectations of $309.81 million. Ares Capital had a net margin of 65.81% and a return on equity of 8.80%. The business’s quarterly revenue was up 15.3% on a year-over-year basis. During the same quarter last year, the company posted $0.28 earnings per share.

Several research firms recently commented on ARCC. BidaskClub lowered shares of Ares Capital from a “hold” rating to a “sell” rating in a research report on Wednesday. ValuEngine lowered shares of Ares Capital from a “buy” rating to a “hold” rating in a research report on Wednesday, May 2nd. JMP Securities raised their price target on shares of Ares Capital from $18.00 to $18.50 and gave the company a “market outperform” rating in a research report on Monday, June 4th. Oppenheimer set a $18.00 price target on shares of Ares Capital and gave the company a “buy” rating in a research report on Thursday, May 3rd. Finally, Zacks Investment Research upgraded shares of Ares Capital from a “hold” rating to a “buy” rating and set a $18.00 price target on the stock in a research report on Tuesday, April 24th. One equities 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’s stock. The company has an average rating of “Buy” and a consensus target price of $17.96.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Arrowstreet Capital Limited Partnership grew its position in shares of Ares Capital by 118.4% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 4,600,653 shares of the investment management company’s stock valued at $72,322,000 after purchasing an additional 2,494,297 shares during the period. OMERS ADMINISTRATION Corp grew its position in shares of Ares Capital by 35.1% in the first quarter. OMERS ADMINISTRATION Corp now owns 2,683,459 shares of the investment management company’s stock valued at $42,586,000 after purchasing an additional 697,640 shares during the period. Bruni J V & Co. Co. grew its position in shares of Ares Capital by 6.5% in the first quarter. Bruni J V & Co. Co. now owns 2,428,309 shares of the investment management company’s stock valued at $38,537,000 after purchasing an additional 148,192 shares during the period. Brown Advisory Inc. grew its position in shares of Ares Capital by 1.0% in the fourth quarter. Brown Advisory Inc. now owns 2,288,552 shares of the investment management company’s stock valued at $35,976,000 after purchasing an additional 21,785 shares during the period. Finally, Millennium Management LLC grew its position in shares of Ares Capital by 979.8% in the first quarter. Millennium Management LLC now owns 2,061,345 shares of the investment management company’s stock valued at $32,714,000 after purchasing an additional 1,870,436 shares during the period. Institutional investors and hedge funds own 41.37% of the company’s stock.

Shares of NASDAQ:ARCC traded down $0.15 during midday trading on Monday, reaching $16.74. The company’s stock had a trading volume of 2,319,189 shares, compared to its average volume of 2,032,096. The firm has a market capitalization of $7.25 billion, a P/E ratio of 12.04, a PEG 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. Ares Capital has a twelve month low of $15.03 and a twelve month high of $17.11.

The business also recently announced a quarterly dividend, which will be paid on Friday, June 29th. Stockholders of record on Friday, June 15th will be given a $0.38 dividend. The ex-dividend date is Thursday, June 14th. This represents a $1.52 annualized dividend and a dividend yield of 9.08%. Ares Capital’s dividend payout ratio (DPR) is 109.35%.

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

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