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

Key Points

• Quarterly results missed expectations: Ares Capital reported earnings of $0.46 per share versus the $0.48 analyst consensus, while revenue of $763 million also fell short of estimates.
• Dividend remains attractive: The company declared a quarterly dividend of $0.48 per share, equivalent to $1.92 annually and a yield of approximately 10.3%.
• Strategic expansion planned: Ares Capital agreed to acquire MidCap Financial Investment Corporation in a stock-and-cash transaction valued at about $2.6 billion, potentially strengthening its position as the largest publicly traded business development company.

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

Ares Capital Stock Down 0.2%

Shares of NASDAQ:ARCC opened at $18.61 on Tuesday. Ares Capital has a 52-week low of $17.40 and a 52-week high of $21.14. The company has a market capitalization of $13.36 billion, a PE ratio of 13.79 and a beta of 0.61. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.28 and a current ratio of 1.28. The company has a fifty day moving average of $19.30 and a 200-day moving average of $19.07.

Ares Capital Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were issued a dividend of $0.48 per share. The ex-dividend date was Tuesday, September 15th. This represents a $1.92 annualized dividend and a dividend yield of 10.3%. Ares Capital's dividend payout ratio is 142.22%.

More 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

Analysts Set New Price Targets

A number of analysts have issued reports on the stock. JPMorgan Chase & Co. cut their price objective on shares of Ares Capital from $19.00 to $18.50 and set an "overweight" rating for the company in a report on Thursday, July 2nd. Keefe, Bruyette & Woods cut their price target on Ares Capital from $21.00 to $20.00 and set an "outperform" rating for the company in a research note on Thursday, July 30th. Truist Financial lowered their price objective on Ares Capital from $22.00 to $21.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Ares Capital in a report on Friday, September 4th. Finally, Wall Street Zen raised Ares Capital from a "sell" rating to a "hold" rating in a report on Saturday, September 19th. Eight analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, Ares Capital has an average rating of "Moderate Buy" and a consensus target price 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.

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