Ares Capital (NASDAQ:ARCC) Issues Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Ares Capital (NASDAQ:ARCC) issued its quarterly earnings results on Tuesday. The investment management company reported $0.61 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.58 by $0.03, Briefing.com reports. Ares Capital had a net margin of 62.77% and a return on equity of 12.37%. The company had revenue of $755.00 million during the quarter, compared to the consensus estimate of $714.27 million. During the same quarter in the previous year, the firm earned $0.58 earnings per share.

Ares Capital Price Performance

Shares of ARCC opened at $20.94 on Thursday. The company has a market capitalization of $12.87 billion, a price-to-earnings ratio of 7.17 and a beta of 1.01. Ares Capital has a fifty-two week low of $18.55 and a fifty-two week high of $21.84. The firm has a 50-day simple moving average of $21.05 and a 200-day simple moving average of $20.66. The company has a debt-to-equity ratio of 0.99, a quick ratio of 1.63 and a current ratio of 1.63.

Ares Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 30th. Stockholders of record on Friday, September 13th will be issued a $0.48 dividend. The ex-dividend date is Friday, September 13th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 9.17%. Ares Capital’s payout ratio is 65.75%.

Wall Street Analysts Forecast Growth

ARCC has been the subject of several recent analyst reports. Royal Bank of Canada reaffirmed an “outperform” rating and set a $22.00 price objective on shares of Ares Capital in a research report on Thursday, May 23rd. Oppenheimer upped their price objective on Ares Capital from $21.00 to $22.00 and gave the stock an “outperform” rating in a research report on Thursday, May 2nd. Truist Financial raised their target price on Ares Capital from $22.00 to $23.00 and gave the stock a “buy” rating in a research report on Thursday, May 2nd. JPMorgan Chase & Co. increased their price target on shares of Ares Capital from $21.50 to $22.00 and gave the company an “overweight” rating in a research note on Thursday, May 2nd. Finally, Compass Point upgraded shares of Ares Capital to a “strong-buy” rating in a research report on Tuesday. Three equities research analysts have rated the stock with a hold rating, five have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $21.71.

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.