Brokerages expect that Ares Capital Co. (NASDAQ:ARCC) will post $336.39 million in sales for the current fiscal quarter, according to Zacks Investment Research. Seven analysts have provided estimates for Ares Capital’s earnings. The highest sales estimate is $347.95 million and the lowest is $326.97 million. Ares Capital posted sales of $317.00 million in the same quarter last year, which suggests a positive year over year growth rate of 6.1%. The business is scheduled to issue its next quarterly earnings results before the market opens on Tuesday, April 30th.
According to Zacks, analysts expect that Ares Capital will report full year sales of $1.39 billion for the current year, with estimates ranging from $1.34 billion to $1.48 billion. For the next financial year, analysts forecast that the firm will report sales of $1.49 billion, with estimates ranging from $1.40 billion to $1.58 billion. Zacks’ sales averages are a mean average based on a survey of research firms that that provide coverage for Ares Capital.
Ares Capital (NASDAQ:ARCC) last issued its quarterly earnings results on Tuesday, February 12th. The investment management company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.41 by $0.04. Ares Capital had a net margin of 64.17% and a return on equity of 9.69%. The business had revenue of $345.00 million for the quarter, compared to the consensus estimate of $327.24 million. During the same quarter in the previous year, the firm earned $0.38 earnings per share.
Several brokerages have weighed in on ARCC. BidaskClub downgraded shares of Ares Capital from a “buy” rating to a “hold” rating in a report on Saturday, January 19th. Zacks Investment Research raised shares of Ares Capital from a “hold” rating to a “buy” rating and set a $18.00 price target on the stock in a report on Monday, January 7th. JMP Securities lifted their price target on shares of Ares Capital from $19.00 to $19.50 and gave the company a “market outperform” rating in a report on Wednesday, February 13th. Finally, National Securities lifted their price target on shares of Ares Capital from $19.00 to $20.00 and gave the company a “buy” rating in a report on Wednesday, February 13th. Two investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company. Ares Capital currently has an average rating of “Buy” and a consensus price target of $19.10.
Several hedge funds have recently added to or reduced their stakes in the company. Ffcm LLC lifted its holdings in shares of Ares Capital by 53.4% in the fourth quarter. Ffcm LLC now owns 2,201 shares of the investment management company’s stock worth $34,000 after buying an additional 766 shares in the last quarter. Pekin Singer Strauss Asset Management IL lifted its holdings in shares of Ares Capital by 1.0% in the fourth quarter. Pekin Singer Strauss Asset Management IL now owns 84,745 shares of the investment management company’s stock worth $1,320,000 after buying an additional 820 shares in the last quarter. Ausdal Financial Partners Inc. lifted its holdings in shares of Ares Capital by 4.3% in the fourth quarter. Ausdal Financial Partners Inc. now owns 24,909 shares of the investment management company’s stock worth $388,000 after buying an additional 1,036 shares in the last quarter. Pinkerton Retirement Specialists LLC lifted its holdings in shares of Ares Capital by 0.9% in the fourth quarter. Pinkerton Retirement Specialists LLC now owns 143,226 shares of the investment management company’s stock worth $2,231,000 after buying an additional 1,283 shares in the last quarter. Finally, Cetera Investment Advisers lifted its holdings in shares of Ares Capital by 4.9% in the fourth quarter. Cetera Investment Advisers now owns 29,975 shares of the investment management company’s stock worth $467,000 after buying an additional 1,388 shares in the last quarter. 39.30% of the stock is currently owned by hedge funds and other institutional investors.
NASDAQ:ARCC traded up $0.14 during trading hours on Friday, hitting $17.44. 506,874 shares of the stock traded hands, compared to its average volume of 1,666,748. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.05 and a quick ratio of 1.05. Ares Capital has a 1 year low of $14.50 and a 1 year high of $17.63. The company has a market capitalization of $7.41 billion, a P/E ratio of 10.38, a P/E/G ratio of 3.38 and a beta of 0.64.
The business also recently announced a quarterly dividend, which was paid on Friday, March 29th. Stockholders of record on Friday, March 15th were issued a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 9.18%. The ex-dividend date was Thursday, March 14th. This is an increase from Ares Capital’s previous quarterly dividend of $0.39. Ares Capital’s payout ratio is 95.24%.
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.
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