Ares Capital Corp (ARCC) Q3 2024 Earnings Call Highlights: Record NAV and Strong Core Earnings ...

GuruFocus.com10-31

Core Earnings Per Share: $0.58 for Q3 2024. Net Asset Value (NAV) Per Share: $19.77, a record high. GAAP Net Income Per Share: $0.52 for Q3 2024. Total Investment Income: Increased compared to the ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAres Capital Corp (ARCC) Q3 2024 Earnings Call Highlights: Record NAV and Strong Core Earnings ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-31 15:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/ares-capital-corp-arcc-q3-071503951.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Core Earnings Per Share: $0.58 for Q3 2024.\nNet Asset Value (NAV) Per Share: $19.77, a record high.\nGAAP Net Income Per Share: $0.52 for Q3 2024.\nTotal Investment Income: Increased compared to the ...</p>\n\n<a href=\"https://finance.yahoo.com/news/ares-capital-corp-arcc-q3-071503951.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"AACT.U","symbol_name":"ARES ACQUISITION CORPORATION II UNIT 1 CL A & 1/2 WT","start_time":0,"source_url":"https://finance.yahoo.com/news/ares-capital-corp-arcc-q3-071503951.html","article_id":"2479028724","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/xp8izzCaUxibsiCdnG7EQg--~B/aD0xNTU7dz0yMjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/e0ae2ee5ca082defa582035e0416c5e3"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2479028724","pubTimestamp":1730358903,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Core Earnings Per Share: $0.58 for Q3 2024.Net Asset Value  Per Share: $19.77, a record high.GAAP Net Income Per Share: $0.52 for Q3 2024.Total Investment Income: Increased compared to the prior quarter.Total Portfolio at Fair Value: $25.9 billion, up from $25 billion in the previous quarter.Weighted Average Yield on Debt and Other Income-Producing Securities: 11.7% at amortized cost as of September 30, 2024.Stockholders' Equity: $12.8 billion or $19.77 per share.New Investment Commitments: Approximately $3.9 billion across 74 transactions in Q3 2024.Portfolio Companies: 535 companies, increased by 9% year-over-year.Nonaccrual Rate at Cost: 1.3%, a 20 basis point decline from the prior quarter.Dividend Declared: $0.48 per share for Q4 2024.Debt-to-Equity Ratio: 1.03 times net of available cash.GuruFocus has detected 7 Warning Signs with ARCC.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"AACT.U":"ARES ACQUISITION CORPORATION II UNIT 1 CL A & 1/2 WT","ARCC":"阿瑞斯","NAV":"纳威司达"},"translate_title":"Ares Capital Corp(ARCC)2024年第三季度收益看涨期权亮点：创纪录的资产净值和强劲的核心收益……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AACT.U":1,"ARCC":1,"NAV":1},"content_text":"Core Earnings Per Share: $0.58 for Q3 2024.\nNet Asset Value (NAV) Per Share: $19.77, a record high.\nGAAP Net Income Per Share: $0.52 for Q3 2024.\nTotal Investment Income: Increased compared to the prior quarter.\nTotal Portfolio at Fair Value: $25.9 billion, up from $25 billion in the previous quarter.\nWeighted Average Yield on Debt and Other Income-Producing Securities: 11.7% at amortized cost as of September 30, 2024.\nStockholders' Equity: $12.8 billion or $19.77 per share.\nNew Investment Commitments: Approximately $3.9 billion across 74 transactions in Q3 2024.\nPortfolio Companies: 535 companies, increased by 9% year-over-year.\nNonaccrual Rate at Cost: 1.3%, a 20 basis point decline from the prior quarter.\nDividend Declared: $0.48 per share for Q4 2024.\nAvailable Liquidity: Nearly $5.8 billion.\nDebt-to-Equity Ratio: 1.03 times net of available cash.\n\n\nWarning! GuruFocus has detected 7 Warning Signs with ARCC.\n\nRelease Date: October 30, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nAres Capital Corp (NASDAQ:ARCC) reported strong core earnings of $0.58 per share and a record NAV per share of $19.77 for the third quarter.\nThe company saw a significant increase in M&A activity, particularly in sponsor-backed transactions, positioning ARCC well in the market.\nARCC's portfolio remains healthy with nonaccrual rates declining quarter-over-quarter and remaining below industry averages.\nThe company has been upgraded by Moody's to a higher investment-grade notch, solidifying its position as the highest-rated company in its sector by all three major rating agencies.\nARCC declared a fourth-quarter dividend of $0.48 per share, maintaining a stable or increasing dividend for over 61 consecutive quarters.\n\n Negative Points \n\nGAAP net income per share decreased to $0.52 for the third quarter of 2024 from $0.89 in the third quarter of 2023.\nThe weighted average yield on debt and other income-producing securities decreased to 11.7% from 12.2% in the previous quarter.\nThere is ongoing spread compression in the market, which could impact future returns.\nInterest and credit facility fees increased due to higher leverage used to fund portfolio growth.\nThe company's second lien exposure has been significantly reduced, which may indicate a shift in market dynamics or strategy.\n\n Q & A Highlights \nQ: Are we entering a phase of increased market activity, and should we expect a busy 2025? A: Yes, the last two quarters have been good, and we remain busy. We expect a busy year next year, especially after the election, which should help stabilize the market. - Kipp DeVeer, CEO\nQ: How does the acquisition of Riverside Credit Solutions impact your focus on the lower middle market? A: Riverside is a very active lower middle market lender, and their integration into our team will help us double down on our commitment to cover the lower middle market even as we scale. - Kort Schnabel, Co-President\nQ: Is the direct lending premium on a secular decline due to spread compression? A: No, the risk premium for locking up capital in illiquid credit remains necessary for market growth. Spread compression is more a response to a better-than-expected economy, leading to less risk and lower returns. - Kipp DeVeer, CEO\nQ: How is the company managing the trend of clients consolidating relationships? A: We are providing more add-on capital to existing portfolio companies to support growth and M&A, which contributes to our market share gain. It's more about add-on capital than refinancing. - Kort Schnabel, Co-President\nQ: What is the outlook for credit quality and potential defaults in the portfolio? A: The credit quality is stable with low nonaccruals. We don't foresee an increase in defaults, and the portfolio is in good shape. - Kipp DeVeer, CEO\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2479028724"}