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What's in Store for Ares Capital as it Gears Up to Report Q3 Earnings?
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Ares Capital Corporation (ARCC - Free Report) is slated to report third-quarter 2024 results on Oct. 30, before the opening bell. While its revenues are expected to have improved on a year-over-year basis, earnings are likely to have been stable.
In the last reported quarter, ARCC’s earnings surpassed the Zacks Consensus Estimate. Results primarily benefited from higher total investment income and robust portfolio activity. 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 met in one of the trailing four quarters, with the average beat being 3.42%.
The Zacks Consensus Estimate for ARCC’s earnings is pegged at 59 cents, stable over the past seven days. The figure indicates no change from the prior-year quarter’s reported number.
The consensus estimate for sales is pegged at $766.6 million, which suggests a 17.4% rise.
Other Key Estimates for ARCC’s Q3 Results
The Zacks Consensus Estimate for interest income from investments (constituting a significant portion of the company’s total investment income) is pegged at $559.5 million, indicating a 13% rise from the prior-year quarter.
The Zacks Consensus Estimate for dividend income of $141.4 million indicates growth of 10.4%.
The consensus estimate for capital structuring service fees is pegged at $44.3 million, suggesting a 121.6% surge. The consensus estimate for other income is pegged at $15.3 million, implying 27.2% growth.
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 third quarter.
Earnings Whispers for ARCC
Our quantitative model cannot conclusively predict whether Ares Capital will be able to beat the Zacks Consensus Estimate for earnings this time. This is because it does not have the right combination of the two key ingredients —a positive Earnings ESP and 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 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Finance Sector Stocks Worth a Look
Here are a couple of finance sector 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 Tradeweb Markets (TW - Free Report) is +1.21% and it carries a Zacks Rank #2 (Buy) at present. The company is slated to report third-quarter 2024 results on Oct. 30.
Over the past 30 days, the Zacks Consensus Estimate for TW’s quarterly earnings has been revised 10.3% upward to 75 cents.
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What's in Store for Ares Capital as it Gears Up to Report Q3 Earnings?
Ares Capital Corporation (ARCC - Free Report) is slated to report third-quarter 2024 results on Oct. 30, before the opening bell. While its revenues are expected to have improved on a year-over-year basis, earnings are likely to have been stable.
See the Zacks Earnings Calendar to stay ahead of market-making news.
In the last reported quarter, ARCC’s earnings surpassed the Zacks Consensus Estimate. Results primarily benefited from higher total investment income and robust portfolio activity. 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 met in one of the trailing four quarters, with the average beat being 3.42%.
Ares Capital Corporation Price and EPS Surprise
Ares Capital Corporation price-eps-surprise | Ares Capital Corporation Quote
ARCC’s Earnings & Sales Projections for Q3
The Zacks Consensus Estimate for ARCC’s earnings is pegged at 59 cents, stable over the past seven days. The figure indicates no change from the prior-year quarter’s reported number.
The consensus estimate for sales is pegged at $766.6 million, which suggests a 17.4% rise.
Other Key Estimates for ARCC’s Q3 Results
The Zacks Consensus Estimate for interest income from investments (constituting a significant portion of the company’s total investment income) is pegged at $559.5 million, indicating a 13% rise from the prior-year quarter.
The Zacks Consensus Estimate for dividend income of $141.4 million indicates growth of 10.4%.
The consensus estimate for capital structuring service fees is pegged at $44.3 million, suggesting a 121.6% surge. The consensus estimate for other income is pegged at $15.3 million, implying 27.2% growth.
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 third quarter.
Earnings Whispers for ARCC
Our quantitative model cannot conclusively predict whether Ares Capital will be able to beat the Zacks Consensus Estimate for earnings this time. This is because it does not have the right combination of the two key ingredients —a positive Earnings ESP and 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 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Finance Sector Stocks Worth a Look
Here are a couple of finance sector 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 Tradeweb Markets (TW - Free Report) is +1.21% and it carries a Zacks Rank #2 (Buy) at present. The company is slated to report third-quarter 2024 results on Oct. 30.
Over the past 30 days, the Zacks Consensus Estimate for TW’s quarterly earnings has been revised 10.3% upward to 75 cents.
Axos Financial, Inc. (AX - Free Report) also is scheduled to release first-quarter fiscal 2025 earnings on Oct. 30. The company, which carries a Zacks Rank #3 at present, has an Earnings ESP of +0.61%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AX’s quarterly earnings estimates have remained unchanged at $1.80 over the past month.