Ares Capital Q3 core EPS meets estimates

Reuters10-28
Ares Capital Q3 core EPS meets estimates

Overview

  • Ares Capital Q3 GAAP net income per share falls to $0.57 from $0.62 yr/yr

  • Core EPS for Q3 meets analyst expectations at $0.50

  • Company maintains Q3 dividend at $0.48 per share

Outlook

  • Company did not provide specific financial guidance for future periods

Result Drivers

  • INVESTMENT ACTIVITY - Ares Capital made $3.9 bln in new investment commitments, focusing on first lien senior secured loans

  • CREDIT PERFORMANCE - Co reports record net asset value per share, citing healthy credit performance

  • BALANCE SHEET ENHANCEMENT - Raised over $1 bln in new debt capital, strengthening balance sheet

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Meet

$0.50

$0.50 (13 Analysts)

Q3 EPS

$0.57

Q3 Net Income

$404 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the investment management & fund operators peer group is "buy"

  • Wall Street's median 12-month price target for Ares Capital Corp is $23.00, about 11.7% above its October 27 closing price of $20.32

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw7Nb6N7a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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