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What's in the Cards for Ares Capital (ARCC) in Q1 Earnings?
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Ares Capital Corporation (ARCC - Free Report) is scheduled to announce first-quarter 2022 results on Apr 26, before market open. Its revenues and earnings are anticipated to have improved in the quarter on a year-over-year basis.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results reflected an improvement in total investment income and solid portfolio activity. However, higher expenses hurt results to some extent.
Ares Capital has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 8.5%.
Earnings & Sales Projections for Q1
The Zacks Consensus Estimate for first-quarter earnings is pegged at 47 cents, which has been unchanged over the past seven days. The figure indicates a rise of 9.3% from the year-ago quarter’s reported number.
The consensus estimate for sales of $488.7 million suggests 25.3% growth on a year-over-year basis.
The Zacks Consensus Estimate for interest income from investments (constituting a significant portion of the company’s total investment income) is pegged at $358 million, indicating a 6.5% rise from the prior quarter’s reported figure.
However, the consensus estimate for capital structuring service fees is pegged at $56 million, suggesting a 51.7% sequential decline. The Zacks Consensus Estimate for dividend income of $63 million indicates a decline of 1.6% on a sequential basis.
The consensus estimate for other income is pegged at $14.42 million, suggesting a rise of 10.9% from the prior quarter’s reported figure.
Ares Capital has been witnessing higher expenses over the past several quarters. As it has been investing in venture growth stage companies, operating expenses are expected to have been elevated in the first quarter.
Earnings Whispers
According to our quantitative model, it cannot be conclusively predicted whether Ares Capital will be able to beat the Zacks Consensus Estimate this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Ares Capital has an Earnings ESP of 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Finance Stocks That Warrant a Look
A few finance stocks, which you may want to consider as these have the right combination of elements to post an earnings beat in their upcoming releases per our model, are Northern Trust Corporation (NTRS - Free Report) and Independent Bank Corporation (IBCP - Free Report) .
The Earnings ESP for NTRS is +0.06%. Northern Trust carries a Zacks Rank #3 at present. NTRS is slated to report results on Apr 26.
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What's in the Cards for Ares Capital (ARCC) in Q1 Earnings?
Ares Capital Corporation (ARCC - Free Report) is scheduled to announce first-quarter 2022 results on Apr 26, before market open. Its revenues and earnings are anticipated to have improved in the quarter on a year-over-year basis.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results reflected an improvement in total investment income and solid portfolio activity. However, higher expenses hurt results to some extent.
Ares Capital has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 8.5%.
Earnings & Sales Projections for Q1
The Zacks Consensus Estimate for first-quarter earnings is pegged at 47 cents, which has been unchanged over the past seven days. The figure indicates a rise of 9.3% from the year-ago quarter’s reported number.
The consensus estimate for sales of $488.7 million suggests 25.3% growth on a year-over-year basis.
Ares Capital Corporation Price and EPS Surprise
Ares Capital Corporation price-eps-surprise | Ares Capital Corporation Quote
Other Key Estimates for Q1
The Zacks Consensus Estimate for interest income from investments (constituting a significant portion of the company’s total investment income) is pegged at $358 million, indicating a 6.5% rise from the prior quarter’s reported figure.
However, the consensus estimate for capital structuring service fees is pegged at $56 million, suggesting a 51.7% sequential decline. The Zacks Consensus Estimate for dividend income of $63 million indicates a decline of 1.6% on a sequential basis.
The consensus estimate for other income is pegged at $14.42 million, suggesting a rise of 10.9% from the prior quarter’s reported figure.
Ares Capital has been witnessing higher expenses over the past several quarters. As it has been investing in venture growth stage companies, operating expenses are expected to have been elevated in the first quarter.
Earnings Whispers
According to our quantitative model, it cannot be conclusively predicted whether Ares Capital will be able to beat the Zacks Consensus Estimate this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Ares Capital has an Earnings ESP of 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Finance Stocks That Warrant a Look
A few finance stocks, which you may want to consider as these have the right combination of elements to post an earnings beat in their upcoming releases per our model, are Northern Trust Corporation (NTRS - Free Report) and Independent Bank Corporation (IBCP - Free Report) .
The Earnings ESP for NTRS is +0.06%. Northern Trust carries a Zacks Rank #3 at present. NTRS is slated to report results on Apr 26.
Independent Bank is scheduled to release quarterly results on Apr 26. IBCP currently has a Zacks Rank #2 (Buy) and an Earnings ESP of +10.00%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.