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Ares Capital (ARCC) to Report Q2 Earnings: What's in Store?
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Ares Capital Corporation (ARCC - Free Report) is scheduled to announce second-quarter 2023 results on Jul 25, before market open. Its revenues and earnings are anticipated to have improved in the to-be-reported quarter on a year-over-year basis.
In the last reported quarter, ARCC’s earnings lagged the Zacks Consensus Estimate. Results were adversely impacted by a rise in expenses. The company also recorded lower gross commitments. On the other hand, higher revenues offered some support.
Ares Capital has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 6.6%.
The Zacks Consensus Estimate for ARCC’s second-quarter earnings is pegged at 57 cents, unchanged over the past seven days. The figure indicates a rise of 9.6% from the year-ago quarter’s reported number. Our estimate for earnings is 56 cents, which implies a year-over-year increase of 7.6%.
The consensus estimate for sales of $623.6 million suggests a 30.2% jump on a year-over-year basis. Our estimate for sales is $608.5 million, implying growth of 27%.
Other Key Estimates for Q2
The Zacks Consensus Estimate for interest income from investments (constituting a significant portion of the company’s total investment income) is pegged at $462 million, indicating a 48.2% surge from the prior-year quarter. Our estimate for the same is $434.5 million, suggesting a year-over-year rise of 36.2%.
The Zacks Consensus Estimate for dividend income of $120.3 million indicates a rise of 1.1% year over year. Our estimate for dividend income is $124 million, indicating growth of 4.2%. The consensus estimate for other income is pegged at $15.7 million, suggesting a jump of 75.1%. Our estimate for the same is $14.3 million, suggesting growth of 58.8%.
The consensus estimate for capital structuring service fees is pegged at $22 million, suggesting a 31.2% year-over-year decline.
Ares Capital has been witnessing higher expenses over the past several quarters. As it has been investing in venture growth stage companies, operating costs are expected to have been elevated in the second quarter.
Earnings Whispers
According to our quantitative model, the chances of Ares Capital beating the Zacks Consensus Estimate this time are low. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Ares Capital has an Earnings ESP of -6.84%.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Finance Stocks That Warrant a Look
Here are a few finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:
The Earnings ESP for Moody’s (MCO - Free Report) is +2.24% and it carries a Zacks Rank #2 (Buy) at present. The company is slated to report second-quarter 2023 results on Jul 25.
Over the past 30 days, the Zacks Consensus Estimate for MCO’s quarterly earnings has moved 1.8 % north.
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Ares Capital (ARCC) to Report Q2 Earnings: What's in Store?
Ares Capital Corporation (ARCC - Free Report) is scheduled to announce second-quarter 2023 results on Jul 25, before market open. Its revenues and earnings are anticipated to have improved in the to-be-reported quarter on a year-over-year basis.
In the last reported quarter, ARCC’s earnings lagged the Zacks Consensus Estimate. Results were adversely impacted by a rise in expenses. The company also recorded lower gross commitments. On the other hand, higher revenues offered some support.
Ares Capital has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 6.6%.
Ares Capital Corporation Price and EPS Surprise
Ares Capital Corporation price-eps-surprise | Ares Capital Corporation Quote
Earnings & Sales Projections for Q2
The Zacks Consensus Estimate for ARCC’s second-quarter earnings is pegged at 57 cents, unchanged over the past seven days. The figure indicates a rise of 9.6% from the year-ago quarter’s reported number. Our estimate for earnings is 56 cents, which implies a year-over-year increase of 7.6%.
The consensus estimate for sales of $623.6 million suggests a 30.2% jump on a year-over-year basis. Our estimate for sales is $608.5 million, implying growth of 27%.
Other Key Estimates for Q2
The Zacks Consensus Estimate for interest income from investments (constituting a significant portion of the company’s total investment income) is pegged at $462 million, indicating a 48.2% surge from the prior-year quarter. Our estimate for the same is $434.5 million, suggesting a year-over-year rise of 36.2%.
The Zacks Consensus Estimate for dividend income of $120.3 million indicates a rise of 1.1% year over year. Our estimate for dividend income is $124 million, indicating growth of 4.2%. The consensus estimate for other income is pegged at $15.7 million, suggesting a jump of 75.1%. Our estimate for the same is $14.3 million, suggesting growth of 58.8%.
The consensus estimate for capital structuring service fees is pegged at $22 million, suggesting a 31.2% year-over-year decline.
Ares Capital has been witnessing higher expenses over the past several quarters. As it has been investing in venture growth stage companies, operating costs are expected to have been elevated in the second quarter.
Earnings Whispers
According to our quantitative model, the chances of Ares Capital beating the Zacks Consensus Estimate this time are low. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Ares Capital has an Earnings ESP of -6.84%.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Finance Stocks That Warrant a Look
Here are a few finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:
The Earnings ESP for Moody’s (MCO - Free Report) is +2.24% and it carries a Zacks Rank #2 (Buy) at present. The company is slated to report second-quarter 2023 results on Jul 25.
Over the past 30 days, the Zacks Consensus Estimate for MCO’s quarterly earnings has moved 1.8 % north.
Invesco (IVZ - Free Report) is also scheduled to release second-quarter 2023 earnings on Jul 25. The company, which carries a Zacks Rank #3 at present, has an Earnings ESP of +0.63%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
IVZ’s quarterly earnings estimates have moved 2.6% upward over the past month.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.