Ares Capital (NASDAQ:ARCC) Releases Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Ares Capital (NASDAQ:ARCC) released its quarterly earnings results on Wednesday. The investment management company reported $0.58 earnings per share for the quarter, missing analysts’ consensus estimates of $0.59 by ($0.01), Briefing.com reports. Ares Capital had a return on equity of 12.31% and a net margin of 53.71%. The business had revenue of $755.00 million for the quarter, compared to analysts’ expectations of $770.45 million. During the same quarter in the prior year, the company posted $0.59 earnings per share. The business’s revenue for the quarter was up 15.3% compared to the same quarter last year.

Ares Capital Stock Down 0.7 %

ARCC stock opened at $21.00 on Friday. The company’s 50 day moving average price is $21.00 and its 200 day moving average price is $20.94. The firm has a market capitalization of $13.24 billion, a price-to-earnings ratio of 8.08 and a beta of 1.01. Ares Capital has a fifty-two week low of $19.24 and a fifty-two week high of $22.05. The company has a debt-to-equity ratio of 1.05, a quick ratio of 1.40 and a current ratio of 1.40.

Ares Capital Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 30th. Stockholders of record on Friday, December 13th will be paid a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 9.14%. The ex-dividend date is Friday, December 13th. Ares Capital’s payout ratio is presently 73.85%.

Analyst Ratings Changes

ARCC has been the subject of a number of recent analyst reports. JMP Securities lifted their price target on shares of Ares Capital from $21.00 to $22.00 and gave the company a “market outperform” rating in a research report on Tuesday, July 30th. Royal Bank of Canada reiterated an “outperform” rating and issued a $22.00 target price on shares of Ares Capital in a report on Monday, August 5th. UBS Group upgraded Ares Capital to a “hold” rating in a research report on Friday, August 23rd. Compass Point upgraded Ares Capital to a “strong-buy” rating in a report on Tuesday, July 30th. Finally, B. Riley increased their target price on Ares Capital from $21.00 to $22.00 and gave the stock a “neutral” rating in a research note on Thursday. Three investment analysts have rated the stock with a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $21.86.

About Ares Capital

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.