Ares Capital (NASDAQ:ARCC) Announces Earnings Results, Misses Estimates By $0.02 EPS

Ares Capital (NASDAQ:ARCC) announced its quarterly earnings data on Tuesday. The investment management company reported $0.46 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.02), FiscalAI reports. The business had revenue of $763.00 million during the quarter, compared to analyst estimates of $776.34 million. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%.

Ares Capital Trading Down 0.2%

Shares of ARCC stock opened at $18.61 on Tuesday. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.28 and a quick ratio of 1.28. Ares Capital has a 1-year low of $17.40 and a 1-year high of $21.14. The business has a 50-day moving average of $19.30 and a 200 day moving average of $19.07. The stock has a market capitalization of $13.36 billion, a PE ratio of 13.79 and a beta of 0.61.

Ares Capital Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were issued a dividend of $0.48 per share. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $1.92 annualized dividend and a dividend yield of 10.3%. Ares Capital’s dividend payout ratio (DPR) is currently 142.22%.

Key Ares Capital News

Here are the key news stories impacting Ares Capital this week:

• Positive Sentiment: Acquisition expands scale: Ares Capital agreed to acquire MidCap Financial Investment Corporation in a stock-and-cash transaction valued at approximately $2.6 billion. The deal is expected to strengthen ARCC’s position as the largest publicly traded business development company, although investors will assess the transaction’s financing, dilution and integration risks. Ares Capital Corporation Agrees to Acquire MidCap Financial Investment Corporation
• Positive Sentiment: Dividend remains steady: ARCC declared a fourth-quarter 2026 dividend of $0.48 per share, payable December 29 to shareholders of record December 15. The unchanged payout reinforces the stock’s appeal to income-focused investors. Ares Capital Announces Financial Results and Dividend
• Positive Sentiment: Analyst-model support: Zacks upgraded Ares Capital to Rank #2, or “Buy,” citing improving expectations for the company’s earnings prospects. ARCC is also highlighted by dividend investors for its high yield and floating-rate loan exposure. Ares Capital Upgraded to Buy
• Neutral Sentiment: Short-interest data offered little signal: Reported short interest was zero as of October 26, suggesting limited evidence of a sizable bearish positioning catalyst.
• Negative Sentiment: Quarterly results missed expectations: Third-quarter earnings were $0.46 per share, below the $0.48 consensus and down from $0.50 a year earlier. Revenue of $763 million also missed the $776.34 million estimate, weakening the immediate earnings narrative. Ares Capital Q3 Earnings and Revenues Miss Estimates

Analyst Upgrades and Downgrades

Several research firms have weighed in on ARCC. UBS Group lifted their price target on shares of Ares Capital from $19.00 to $21.00 and gave the company a “neutral” rating in a research note on Tuesday, September 1st. Wall Street Zen upgraded Ares Capital from a “sell” rating to a “hold” rating in a research note on Saturday, September 19th. Weiss Ratings restated a “hold (c)” rating on shares of Ares Capital in a report on Friday, September 4th. JPMorgan Chase & Co. decreased their price target on Ares Capital from $19.00 to $18.50 and set an “overweight” rating for the company in a report on Thursday, July 2nd. Finally, Truist Financial cut their price objective on shares of Ares Capital from $22.00 to $21.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. Eight equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $20.39.

Ares Capital Company Profile

Ares Capital Corporation (NASDAQ: ARCC) is a business development company that provides financing to middle-market companies. The company primarily invests in first-lien senior secured loans, second-lien loans, subordinated debt, and, to a lesser extent, equity securities. Its investments are generally designed to support acquisitions, recapitalizations, refinancings, growth initiatives, and other corporate activities.

Founded in 2004, Ares Capital is externally managed by Ares Capital Management LLC, an affiliate of Ares Management Corporation.