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The company’s total investment income is expected to have remained resilient, supported by continued growth in the investment portfolio and steady deployment activity. However, quarterly results are likely to reflect modest pressure from lower prepayment activity amid higher rates. The Zacks Consensus Estimate for ARCC’s third-quarter sales is pegged at $780.3 million, which indicates a year-over-year fall of 0.2%.
In the past seven days, the consensus estimate for earnings for the to-be-reported quarter has been unchanged at 48 cents. The estimate implies a 4% decline from the prior-year quarter.
Estimate Revision Trend
Image Source: Zacks Investment Research
ARCC does not have a decent or impressive earnings surprise history. The company’s earnings lagged the Zacks Consensus Estimate in one and matched in three of the trailing four quarters.
Earnings Surprise History
Image Source: Zacks Investment Research
Key Q3 Estimates for Ares Capital
The Zacks Consensus Estimate for ARCC’s interest income from investments (constituting a significant portion of total investment income) is pegged at $554.5 million, calling for a 1.2% decline from the prior-year quarter.
The consensus mark for other income is pegged at $19.28 million, implying a 39.8% drop. The consensus estimate for capital structuring service fees is pegged at $46.23 million, implying a 9.9% fall.
However, the Zacks Consensus Estimate for dividend income of $154.7 million suggests a 9.7% rise from the prior-year quarter.
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.
What Our Quantitative Model Unveils for ARCC
We cannot conclusively predict an earnings beat for Ares Capital this time. 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.
Earnings ESP: The Earnings ESP for Ares Capital is 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: ARCC currently carries a Zacks Rank #3.
Finance Stocks Worth a Look
Here are a couple of 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:
Over the past seven days, the Zacks Consensus Estimate for COLB’s quarterly earnings has been unchanged at 77 cents.
Associated Banc-Corp (ASB - Free Report) is also scheduled to report quarterly results tomorrow. The company has an Earnings ESP of +1.71% and a Zacks Rank #3.
Over the past seven days, the Zacks Consensus Estimate for ASB’s quarterly earnings has been unchanged at 76 cents.
Image: Bigstock
Ares Capital Set to Release Q3 Earnings: Here's What to Expect
Key Takeaways
Ares Capital Corporation (ARCC - Free Report) is scheduled to announce third-quarter 2026 results on Oct. 27, before market open.
The company’s total investment income is expected to have remained resilient, supported by continued growth in the investment portfolio and steady deployment activity. However, quarterly results are likely to reflect modest pressure from lower prepayment activity amid higher rates. The Zacks Consensus Estimate for ARCC’s third-quarter sales is pegged at $780.3 million, which indicates a year-over-year fall of 0.2%.
In the past seven days, the consensus estimate for earnings for the to-be-reported quarter has been unchanged at 48 cents. The estimate implies a 4% decline from the prior-year quarter.
Estimate Revision Trend
Image Source: Zacks Investment Research
ARCC does not have a decent or impressive earnings surprise history. The company’s earnings lagged the Zacks Consensus Estimate in one and matched in three of the trailing four quarters.
Earnings Surprise History
Image Source: Zacks Investment Research
Key Q3 Estimates for Ares Capital
The Zacks Consensus Estimate for ARCC’s interest income from investments (constituting a significant portion of total investment income) is pegged at $554.5 million, calling for a 1.2% decline from the prior-year quarter.
The consensus mark for other income is pegged at $19.28 million, implying a 39.8% drop. The consensus estimate for capital structuring service fees is pegged at $46.23 million, implying a 9.9% fall.
However, the Zacks Consensus Estimate for dividend income of $154.7 million suggests a 9.7% rise from the prior-year quarter.
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.
What Our Quantitative Model Unveils for ARCC
We cannot conclusively predict an earnings beat for Ares Capital this time. 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.
Earnings ESP: The Earnings ESP for Ares Capital is 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: ARCC currently carries a Zacks Rank #3.
Finance Stocks Worth a Look
Here are a couple of 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 Columbia Banking System, Inc. (COLB - Free Report) is +0.07%, and it currently carries a Zacks Rank #2 (Buy). The company is slated to report quarterly results tomorrow. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past seven days, the Zacks Consensus Estimate for COLB’s quarterly earnings has been unchanged at 77 cents.
Associated Banc-Corp (ASB - Free Report) is also scheduled to report quarterly results tomorrow. The company has an Earnings ESP of +1.71% and a Zacks Rank #3.
Over the past seven days, the Zacks Consensus Estimate for ASB’s quarterly earnings has been unchanged at 76 cents.