Ares Capital Co. (ARCC) Expected to Post Quarterly Sales of $306.22 Million

Wall Street analysts expect Ares Capital Co. (NASDAQ:ARCC) to post $306.22 million in sales for the current fiscal quarter, according to Zacks. Seven analysts have made estimates for Ares Capital’s earnings, with the highest sales estimate coming in at $315.85 million and the lowest estimate coming in at $291.00 million. Ares Capital posted sales of $275.00 million during the same quarter last year, which would indicate a positive year-over-year growth rate of 11.4%. The company is scheduled to report its next earnings report before the market opens on Wednesday, May 2nd.

On average, analysts expect that Ares Capital will report full year sales of $306.22 million for the current year, with estimates ranging from $1.08 billion to $1.32 billion. For the next year, analysts forecast that the firm will post sales of $1.32 billion per share, with estimates ranging from $1.12 billion to $1.42 billion. Zacks’ sales averages are an average based on a survey of sell-side analysts that follow Ares Capital.

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Ares Capital (NASDAQ:ARCC) last released its earnings results on Tuesday, February 13th. The investment management company reported $0.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.37 by $0.01. The business had revenue of $307.00 million for the quarter, compared to the consensus estimate of $301.38 million. Ares Capital had a return on equity of 8.43% and a net margin of 57.50%. Ares Capital’s quarterly revenue was up 17.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.42 earnings per share.

ARCC has been the topic of a number of recent analyst reports. Zacks Investment Research downgraded Ares Capital from a “hold” rating to a “sell” rating in a research report on Tuesday, January 2nd. TheStreet raised Ares Capital from a “c+” rating to a “b-” rating in a research report on Tuesday, December 12th. National Securities reissued a “buy” rating and set a $19.00 price target on shares of Ares Capital in a research report on Thursday, February 15th. BidaskClub downgraded Ares Capital from a “sell” rating to a “strong sell” rating in a research report on Wednesday, February 28th. Finally, Oppenheimer set a $18.00 price target on Ares Capital and gave the stock a “buy” rating in a research report on Tuesday, February 13th. Four analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. The stock presently has a consensus rating of “Buy” and a consensus price target of $18.00.

In other news, insider Michael J. Arougheti acquired 25,000 shares of Ares Capital stock in a transaction dated Thursday, March 15th. The stock was bought at an average price of $15.60 per share, for a total transaction of $390,000.00. Following the completion of the acquisition, the insider now directly owns 984,535 shares in the company, valued at approximately $15,358,746. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Penelope F. Roll acquired 3,000 shares of Ares Capital stock in a transaction dated Thursday, February 15th. The shares were purchased at an average price of $15.81 per share, with a total value of $47,430.00. The disclosure for this purchase can be found here. In the last 90 days, insiders have bought 28,600 shares of company stock valued at $447,042. Corporate insiders own 0.49% of the company’s stock.

Several large investors have recently modified their holdings of ARCC. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Ares Capital by 118.4% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 4,600,653 shares of the investment management company’s stock worth $72,322,000 after acquiring an additional 2,494,297 shares during the period. Two Sigma Investments LP boosted its holdings in shares of Ares Capital by 1,217.0% during the fourth quarter. Two Sigma Investments LP now owns 1,739,696 shares of the investment management company’s stock worth $27,348,000 after acquiring an additional 1,607,603 shares during the period. Two Sigma Advisers LP boosted its holdings in shares of Ares Capital by 43.8% during the fourth quarter. Two Sigma Advisers LP now owns 955,455 shares of the investment management company’s stock worth $15,020,000 after acquiring an additional 291,000 shares during the period. Schroder Investment Management Group boosted its holdings in shares of Ares Capital by 19.0% during the fourth quarter. Schroder Investment Management Group now owns 1,629,951 shares of the investment management company’s stock worth $25,623,000 after acquiring an additional 260,007 shares during the period. Finally, Gilbert & Cook Inc. boosted its holdings in shares of Ares Capital by 776.1% during the fourth quarter. Gilbert & Cook Inc. now owns 262,118 shares of the investment management company’s stock worth $4,120,000 after acquiring an additional 232,198 shares during the period. Institutional investors own 42.72% of the company’s stock.

NASDAQ ARCC traded up $0.04 during trading on Tuesday, reaching $15.96. 2,202,549 shares of the company’s stock were exchanged, compared to its average volume of 2,216,557. The company has a market cap of $6,812.26, a PE ratio of 11.48, a price-to-earnings-growth ratio of 3.41 and a beta of 0.58. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.68. Ares Capital has a fifty-two week low of $15.03 and a fifty-two week high of $17.68.

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 30th. Stockholders of record on Thursday, March 15th were issued a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a dividend yield of 9.52%. The ex-dividend date of this dividend was Wednesday, March 14th. Ares Capital’s dividend payout ratio is presently 109.35%.

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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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