Ares Capital (NASDAQ:ARCC) Releases Earnings Results, Misses Estimates By $0.01 EPS

Ares Capital (NASDAQ:ARCC) issued its quarterly earnings data on Wednesday. The investment management company reported $0.59 EPS for the quarter, missing the consensus estimate of $0.60 by ($0.01), Briefing.com reports. Ares Capital had a net margin of 62.77% and a return on equity of 12.68%. The firm had revenue of $701.00 million for the quarter, compared to analysts’ expectations of $703.85 million. During the same period in the prior year, the firm posted $0.56 EPS. Ares Capital’s revenue was up 13.4% on a year-over-year basis.

Ares Capital Price Performance

ARCC stock opened at $20.61 on Friday. The firm has a market cap of $12.51 billion, a P/E ratio of 7.06 and a beta of 0.99. The firm’s fifty day moving average is $20.42 and its 200 day moving average is $20.06. Ares Capital has a 52 week low of $17.53 and a 52 week high of $21.00. The company has a debt-to-equity ratio of 1.06, a quick ratio of 1.24 and a current ratio of 1.24.

Ares Capital Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 28th. Stockholders of record on Friday, June 14th will be paid a $0.48 dividend. The ex-dividend date of this dividend is Friday, June 14th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.32%. Ares Capital’s dividend payout ratio (DPR) is 65.75%.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on ARCC shares. JMP Securities restated a “market outperform” rating and set a $21.00 price target on shares of Ares Capital in a research report on Tuesday, March 26th. B. Riley cut shares of Ares Capital from a “buy” rating to a “neutral” rating and set a $21.00 price objective on the stock. in a research report on Monday, January 8th. Truist Financial lifted their target price on shares of Ares Capital from $22.00 to $23.00 and gave the company a “buy” rating in a research report on Thursday. Wells Fargo & Company increased their price target on shares of Ares Capital from $19.00 to $20.00 and gave the stock an “equal weight” rating in a report on Monday, January 29th. Finally, Oppenheimer lifted their price objective on shares of Ares Capital from $21.00 to $22.00 and gave the stock an “outperform” rating in a report on Thursday. Three research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $21.43.

Ares Capital Company Profile

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.