Ares Capital Earnings Calls

Q4 2024 Missed
$0.550 (-5.17%)
Release date Feb 05, 2025
EPS estimate $0.580
EPS actual $0.550
EPS Surprise -5.17%
Revenue estimate 779.036M
Revenue actual 759M
Revenue Surprise -2.57%
Q3 2024 Missed
$0.580 (-3.33%)
Release date Oct 30, 2024
EPS estimate $0.600
EPS actual $0.580
EPS Surprise -3.33%
Revenue estimate 770.446M
Revenue actual 751M
Revenue Surprise -2.52%
Q2 2024 Beat
$0.610 (5.17%)
Release date Jul 30, 2024
EPS estimate $0.580
EPS actual $0.610
EPS Surprise 5.17%
Revenue estimate 715.334M
Revenue actual 767M
Revenue Surprise 7.22%
Q1 2024 Missed
$0.590 (-1.67%)
Release date May 01, 2024
EPS estimate $0.600
EPS actual $0.590
EPS Surprise -1.67%
Revenue estimate 703.846M
Revenue actual 495M
Revenue Surprise -29.67%

Last 4 Quarters for Ares Capital

Below you can see how ARCC performed 4 days prior and 4 days after releasing the earnings report. Also, you can see the pre-estimates and the actual earnings. This information can give you a slight idea of what you might expect for the next quarter's release.

Q1 2024 Missed
Release date May 01, 2024
Fiscal end date Mar 31, 2024
Price on release $20.85
EPS estimate $0.600
EPS actual $0.590
EPS surprise -1.67%
Date Price
Apr 25, 2024 $20.63
Apr 26, 2024 $20.78
Apr 29, 2024 $20.81
Apr 30, 2024 $20.61
May 01, 2024 $20.85
May 02, 2024 $20.54
May 03, 2024 $20.61
May 06, 2024 $20.89
May 07, 2024 $20.80
4 days before 1.07%
4 days after -0.240%
On release day -1.49%
Change in period 0.82%
Q2 2024 Beat
Release date Jul 30, 2024
Fiscal end date Jun 30, 2024
Price on release $21.28
EPS estimate $0.580
EPS actual $0.610
EPS surprise 5.17%
Date Price
Jul 24, 2024 $20.76
Jul 25, 2024 $20.77
Jul 26, 2024 $20.95
Jul 29, 2024 $20.89
Jul 30, 2024 $21.28
Jul 31, 2024 $20.94
Aug 01, 2024 $20.83
Aug 02, 2024 $20.29
Aug 05, 2024 $19.80
4 days before 2.50%
4 days after -6.95%
On release day -1.60%
Change in period -4.62%
Q3 2024 Missed
Release date Oct 30, 2024
Fiscal end date Sep 30, 2024
Price on release $21.34
EPS estimate $0.600
EPS actual $0.580
EPS surprise -3.33%
Date Price
Oct 24, 2024 $21.67
Oct 25, 2024 $21.58
Oct 28, 2024 $21.67
Oct 29, 2024 $21.57
Oct 30, 2024 $21.34
Oct 31, 2024 $21.14
Nov 01, 2024 $21.00
Nov 04, 2024 $20.88
Nov 05, 2024 $21.01
4 days before -1.52%
4 days after -1.55%
On release day -0.94%
Change in period -3.05%
Q4 2024 Missed
Release date Feb 05, 2025
Fiscal end date Dec 31, 2024
Price on release $23.10
EPS estimate $0.580
EPS actual $0.550
EPS surprise -5.17%
Date Price
Jan 30, 2025 $23.42
Jan 31, 2025 $23.67
Feb 03, 2025 $23.80
Feb 04, 2025 $23.81
Feb 05, 2025 $23.10
Feb 06, 2025 $22.73
Feb 07, 2025 $22.77
Feb 10, 2025 $22.87
Feb 11, 2025 $22.71
4 days before -1.37%
4 days after -1.71%
On release day -1.60%
Change in period -3.05%

Ares Capital Earnings Call Transcript Summary of Q4 2024

Management Stability

Kipp will remain involved with the company in advisory roles. The leadership transition reflects confidence in the existing management team, which has a strong track record.

Financial Highlights

  • Quarterly Performance:
    • GAAP net income per share was $0.55 (down from $0.62 in Q3 2024 and $0.72 in Q4 2023).
    • Annual GAAP net income per share for 2024 was $2.44 (down from $2.75 in 2023).
  • Core Earnings: Core EPS for Q4 was $0.55 (down from $0.58 in Q3 2024). The decline was attributed to lower portfolio yields.
  • NAV Growth: Record net asset value per share of $19.89, marking eight consecutive quarters of growth.
  • Dividend Declaration: A quarterly dividend of $0.48 per share has been confirmed for Q1 2025, consistent with Q4 2024 dividend.

Investment Performance

  • Strong Origination Activity: A record origination year in 2024 with over $15 billion in new commitments, demonstrating robust demand despite a subdued M&A environment.
  • Portfolio Growth: Portfolio size reached $26.7 billion, reflecting a 3% increase from Q3 2024 and a 17% increase year-over-year.
  • Credit Performance: Non-accrual rate improved and remains below historical averages, with portfolio companies showing strong underlying growth.

Market Outlook

  • Economic Resilience: Anticipated increase in economic activity and M&A activity in 2025, alongside significant credit performance and strong balance sheet positioning.
  • Sourcing Advantages: Leveraging existing borrower relationships, with 70% of new commitments going to incumbent borrowers, has helped maintain strong origination volumes.
  • Credit Ratings: Upgraded by major credit rating agencies, positioning Ares as the highest-rated BDC, which could enhance funding costs and debt capacity.

Future Guidance

  • High Level of Liquidity: Nearly $6.7 billion in available liquidity to support growth initiatives.
  • Ongoing Strategy: Continued focus on selectively acquiring assets, leveraging experience across the middle market, with no expected significant direct impact from new government policies.
  • Expectations for Q1 2025: Anticipated strong activity as early signs of market activity are recognized; backlog of commitments more than doubled year-over-year.

Ares Capital Earnings History

Earnings Calendar

FAQ

When is the earnings report for ARCC?
Ares Capital Corporation (ARCC) has scheduled its earnings report for May 07, 2025 before the markets open.

What is the ARCC price-to-earnings (P/E) ratio?
ARCC P/E ratio as of Feb 13, 2025 (TTM) is 9.86.

What is the ARCC EPS forecast?
The forecasted EPS (Earnings Per Share) for Ares Capital Corporation (ARCC) for the first fiscal quarter 2025 is $0.550.

What are Ares Capital Corporation's retained earnings?
On its balance sheet, Ares Capital Corporation reported retained earnings of $759.00 million for the latest quarter ending Dec 31, 2024.

What Is an Earnings Report?
An earnings report is usually issued quarterly (Q1, Q2, Q3 & Q4) by public companies to report their performance. Earnings reports typically include net income, earnings per share, earnings from continuing operations, and net sales. Looking at the earnings report investors can start gauge the financial health of the company and make even better decisions whether to buy, sell, or stay in the company. Fundamental analysts and value investors will typically hunt for stocks that continue to show good financial ratios and use a decline as an exit point. One of the most anticipated numbers for analysis is earnings per share because it indicates how much the company earned for its shareholders. The report will also indicate a possible dividend.

Earnings Report Content
Earnings reports generally provide an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. These figures are typically measured against previous quarters/years. Furthermore, the earnings report usually includes a summary and analysis from the CEO or company spokesman, alongside a more general view of the financials and future forecast.

What To Know About Earnings Reports?
Announcement of earnings for a stock, particularly for well followed large-capitalization stocks, can move the market. Stock prices can fluctuate wildly on days when the quarterly earnings report is released. Despite good reports, stocks may very well fall if the investors were expecting more or they believe the next quarter will not be as good. Investors always try to be ahead of the market and future earnings/losses are often discounted into the current price of the stock. It is natural for stocks to start to move in either direction a few days before the release of an earnings report.
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ABOUT ARES CAPITAL CORPORATION
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 informatio...
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