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Ares Capital (ARCC) to Report Q1 Earnings: What's in Store?
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Ares Capital Corporation (ARCC - Free Report) is scheduled to announce first-quarter 2024 results on May 1, before market open. Its revenues and earnings are anticipated to have improved in the quarter on a year-over-year basis.
In the last reported quarter, ARCC’s earnings surpassed the Zacks Consensus Estimate. Results were primarily aided by an improvement in total investment income. Also, the company’s portfolio activity was robust. However, an increase in expenses hurt the results to some extent.
Ares Capital has a decent earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in three and lagged in one of the trailing four quarters, the average beat being 1.3%.
The Zacks Consensus Estimate for ARCC’s first-quarter earnings is pegged at 59 cents, unchanged over the past seven days. The figure indicates a rise of 5.4% from the prior-year quarter’s reported number.
The consensus estimate for sales is pegged at $701.4 million, which suggests a 13.5% rise on a year-over-year basis.
Other Key Estimates for Q1
The Zacks Consensus Estimate for interest income from investments (constituting a significant portion of the company’s total investment income) is pegged at $527 million, indicating a 12.1% rise from the prior-year quarter’s actual. Our estimate for the same is $523.4 million.
The Zacks Consensus Estimate for dividend income of $127 million indicates year-over-year growth of 5%. Our estimate for dividend income is $130.7 million.
The consensus estimate for capital structuring service fees is pegged at $30.22 million, suggesting a significant year-over-year rise. Our estimate for the metric is $27.2 million.
The consensus estimate for other income is pegged at $13.34 million, implying a year-over-year decline of 21.5%. Our estimate for the same is $8.7 million.
Ares Capital has been witnessing higher expenses over the past several quarters. As the company has been investing in venture growth stage companies, operating costs are expected to have been elevated in the first quarter. Our estimate for total expenses of $357.3 million indicates a year-over-year rise of 19.9%.
Earnings Whispers
According to our quantitative model, the chances of Ares Capital beating the Zacks Consensus Estimate for earnings 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 are reported with our Earnings ESP Filter.
Earnings ESP: Ares Capital has an Earnings ESP of -1.32%.
Zacks Rank: The company currently carries a Zacks Rank #2 (Buy).
Results of Finance Stocks
Evercore Inc.’s (EVR - Free Report) first-quarter 2024 adjusted earnings per share of $2.13 missed the Zacks Consensus Estimate of $2.20. The bottom line compared unfavorably with earnings of $2.16 per share reported a year ago.
EVR’s results were affected by a rise in expenses. Nonetheless, an increase in revenues generated from the Investment Management and Investment Banking & Equities segments offered support.
Capital One’s (COF - Free Report) first-quarter 2024 adjusted earnings of $3.21 per share lagged the Zacks Consensus Estimate of $3.25. In the prior-year quarter, earnings per share was $2.31. The reported quarter’s results exclude an FDIC special assessment charge of $42 million.
COF’s results were adversely impacted by higher expenses. Also, loan balances witnessed a sequential decline in the quarter. Nevertheless, an increase in net interest income, along with higher non-interest income, supported the results to some extent.
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Ares Capital (ARCC) to Report Q1 Earnings: What's in Store?
Ares Capital Corporation (ARCC - Free Report) is scheduled to announce first-quarter 2024 results on May 1, before market open. Its revenues and earnings are anticipated to have improved in the quarter on a year-over-year basis.
In the last reported quarter, ARCC’s earnings surpassed the Zacks Consensus Estimate. Results were primarily aided by an improvement in total investment income. Also, the company’s portfolio activity was robust. However, an increase in expenses hurt the results to some extent.
Ares Capital has a decent earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in three and lagged in one of the trailing four quarters, the average beat being 1.3%.
Ares Capital Corporation Price and EPS Surprise
Ares Capital Corporation price-eps-surprise | Ares Capital Corporation Quote
Earnings & Sales Projections for Q1
The Zacks Consensus Estimate for ARCC’s first-quarter earnings is pegged at 59 cents, unchanged over the past seven days. The figure indicates a rise of 5.4% from the prior-year quarter’s reported number.
The consensus estimate for sales is pegged at $701.4 million, which suggests a 13.5% rise on a year-over-year basis.
Other Key Estimates for Q1
The Zacks Consensus Estimate for interest income from investments (constituting a significant portion of the company’s total investment income) is pegged at $527 million, indicating a 12.1% rise from the prior-year quarter’s actual. Our estimate for the same is $523.4 million.
The Zacks Consensus Estimate for dividend income of $127 million indicates year-over-year growth of 5%. Our estimate for dividend income is $130.7 million.
The consensus estimate for capital structuring service fees is pegged at $30.22 million, suggesting a significant year-over-year rise. Our estimate for the metric is $27.2 million.
The consensus estimate for other income is pegged at $13.34 million, implying a year-over-year decline of 21.5%. Our estimate for the same is $8.7 million.
Ares Capital has been witnessing higher expenses over the past several quarters. As the company has been investing in venture growth stage companies, operating costs are expected to have been elevated in the first quarter. Our estimate for total expenses of $357.3 million indicates a year-over-year rise of 19.9%.
Earnings Whispers
According to our quantitative model, the chances of Ares Capital beating the Zacks Consensus Estimate for earnings 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 are reported with our Earnings ESP Filter.
Earnings ESP: Ares Capital has an Earnings ESP of -1.32%.
Zacks Rank: The company currently carries a Zacks Rank #2 (Buy).
Results of Finance Stocks
Evercore Inc.’s (EVR - Free Report) first-quarter 2024 adjusted earnings per share of $2.13 missed the Zacks Consensus Estimate of $2.20. The bottom line compared unfavorably with earnings of $2.16 per share reported a year ago.
EVR’s results were affected by a rise in expenses. Nonetheless, an increase in revenues generated from the Investment Management and Investment Banking & Equities segments offered support.
Capital One’s (COF - Free Report) first-quarter 2024 adjusted earnings of $3.21 per share lagged the Zacks Consensus Estimate of $3.25. In the prior-year quarter, earnings per share was $2.31. The reported quarter’s results exclude an FDIC special assessment charge of $42 million.
COF’s results were adversely impacted by higher expenses. Also, loan balances witnessed a sequential decline in the quarter. Nevertheless, an increase in net interest income, along with higher non-interest income, supported the results to some extent.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.