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Ares Capital (ARCC) to Report Q2 Earnings: What's in Store?
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Ares Capital Corporation (ARCC - Free Report) is scheduled to announce second-quarter 2024 results on Jul 30, before market open. While its revenues are anticipated to have improved in the quarter on a year-over-year basis, earnings are likely to have been unchanged.
In the last reported quarter, ARCC’s earnings met the Zacks Consensus Estimate. Results were primarily aided by an improvement in total investment income. Also, the company’s portfolio activity was robust. However, an increase in expenses hurt the results to an extent.
Ares Capital has a decent earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in three and met in one of the trailing four quarters, the average beat being 2.6%.
The Zacks Consensus Estimate for ARCC’s second-quarter earnings is pegged at 58 cents, unchanged over the past seven days. The figure indicates no change from the prior-year quarter’s reported number.
The consensus estimate for sales is pegged at $714.3 million, which suggests a 12.7% rise on a year-over-year basis.
Other Key Estimates for Q2
The Zacks Consensus Estimate for interest income from investments (constituting a significant portion of the company’s total investment income) is pegged at $524 million, indicating a 10.1% rise from the prior-year quarter’s actual. Our estimate for the same is $522.8 million.
The Zacks Consensus Estimate for dividend income of $140 million indicates year-over-year growth of 13.8%. Our estimate for dividend income is $137.3 million.
The consensus estimate for capital structuring service fees is pegged at $33 million, suggesting a 57.1% year-over-year rise. Our estimate for the metric is $28.4 million.
The consensus estimate for other income is pegged at $14 million, implying no growth from the prior-year quarter’s reported figure. Our estimate for the same is $14.3 million.
Ares Capital has been witnessing higher expenses over the past several quarters. As the company has been investing in venture growth stage companies, operating costs are expected to have been elevated in the second quarter. Our estimate for total expenses of $378.7 million indicates a year-over-year rise of 20.6%.
Earnings Whispers
According to our quantitative model, it cannot be conclusively predicted whether Ares Capital will be able to beat the Zacks Consensus Estimate for earnings this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they are 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.
Results of Finance Stocks
Evercore Inc.’s (EVR - Free Report) second-quarter adjusted earnings per share of $1.81 surpassed the Zacks Consensus Estimate of $1.66. Also, the bottom line compared favorably with the prior-year quarter’s reported figure of 96 cents.
EVR’s results benefited from an increase in revenues generated from the Investment Management, and Investment Banking & Equities segments. An improvement in the assets under management balance was another positive.
Capital One’s (COF - Free Report) second-quarter 2024 adjusted earnings of $3.14 per share lagged the Zacks Consensus Estimate of $3.28. In the prior-year quarter, earnings per share was $3.52.
In the reported quarter, there was an allowance build for the Walmart program agreement loss sharing termination, a Walmart program agreement termination contra revenue impact, Discover integration expenses and an FDIC special assessment charge.
COF’s results were adversely impacted by higher expenses and provisions. However, an increase in net interest income, along with higher non-interest income, supported the results to some extent.
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Ares Capital (ARCC) to Report Q2 Earnings: What's in Store?
Ares Capital Corporation (ARCC - Free Report) is scheduled to announce second-quarter 2024 results on Jul 30, before market open. While its revenues are anticipated to have improved in the quarter on a year-over-year basis, earnings are likely to have been unchanged.
In the last reported quarter, ARCC’s earnings met the Zacks Consensus Estimate. Results were primarily aided by an improvement in total investment income. Also, the company’s portfolio activity was robust. However, an increase in expenses hurt the results to an extent.
Ares Capital has a decent earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in three and met in one of the trailing four quarters, the average beat being 2.6%.
Ares Capital Corporation Price and EPS Surprise
Ares Capital Corporation price-eps-surprise | Ares Capital Corporation Quote
Earnings & Sales Projections for Q2
The Zacks Consensus Estimate for ARCC’s second-quarter earnings is pegged at 58 cents, unchanged over the past seven days. The figure indicates no change from the prior-year quarter’s reported number.
The consensus estimate for sales is pegged at $714.3 million, which suggests a 12.7% rise on a year-over-year basis.
Other Key Estimates for Q2
The Zacks Consensus Estimate for interest income from investments (constituting a significant portion of the company’s total investment income) is pegged at $524 million, indicating a 10.1% rise from the prior-year quarter’s actual. Our estimate for the same is $522.8 million.
The Zacks Consensus Estimate for dividend income of $140 million indicates year-over-year growth of 13.8%. Our estimate for dividend income is $137.3 million.
The consensus estimate for capital structuring service fees is pegged at $33 million, suggesting a 57.1% year-over-year rise. Our estimate for the metric is $28.4 million.
The consensus estimate for other income is pegged at $14 million, implying no growth from the prior-year quarter’s reported figure. Our estimate for the same is $14.3 million.
Ares Capital has been witnessing higher expenses over the past several quarters. As the company has been investing in venture growth stage companies, operating costs are expected to have been elevated in the second quarter. Our estimate for total expenses of $378.7 million indicates a year-over-year rise of 20.6%.
Earnings Whispers
According to our quantitative model, it cannot be conclusively predicted whether Ares Capital will be able to beat the Zacks Consensus Estimate for earnings this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they are 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.
Results of Finance Stocks
Evercore Inc.’s (EVR - Free Report) second-quarter adjusted earnings per share of $1.81 surpassed the Zacks Consensus Estimate of $1.66. Also, the bottom line compared favorably with the prior-year quarter’s reported figure of 96 cents.
EVR’s results benefited from an increase in revenues generated from the Investment Management, and Investment Banking & Equities segments. An improvement in the assets under management balance was another positive.
Capital One’s (COF - Free Report) second-quarter 2024 adjusted earnings of $3.14 per share lagged the Zacks Consensus Estimate of $3.28. In the prior-year quarter, earnings per share was $3.52.
In the reported quarter, there was an allowance build for the Walmart program agreement loss sharing termination, a Walmart program agreement termination contra revenue impact, Discover integration expenses and an FDIC special assessment charge.
COF’s results were adversely impacted by higher expenses and provisions. However, an increase in net interest income, along with higher non-interest income, supported the results to some extent.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.