Ares Capital (NASDAQ:ARCC) Releases Earnings Results, Misses Estimates By $0.02 EPS

Ares Capital (NASDAQ:ARCC) released 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. The business had revenue of $763.00 million for the quarter, compared to analysts’ expectations of $776.34 million. Ares Capital had a return on equity of 9.80% and a net margin of 30.91%. The business’s revenue for the quarter was down 2.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.50 earnings per share.

Ares Capital Stock Down 0.2%

Ares Capital stock opened at $18.61 on Tuesday. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.28 and a quick ratio of 1.28. Ares Capital has a 1-year low of $17.40 and a 1-year high of $21.14. The stock has a market cap of $13.36 billion, a PE ratio of 13.79 and a beta of 0.61. The stock’s fifty day moving average is $19.30 and its two-hundred day moving average is $19.07.

Ares Capital Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were issued a $0.48 dividend. This represents a $1.92 annualized dividend and a yield of 10.3%. The ex-dividend date of this dividend was Tuesday, September 15th. Ares Capital’s dividend payout ratio is 142.22%.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on ARCC. Keefe, Bruyette & Woods lowered their target price on shares of Ares Capital from $21.00 to $20.00 and set an “outperform” rating for the company in a research note on Thursday, July 30th. JPMorgan Chase & Co. decreased their price target on Ares Capital from $19.00 to $18.50 and set an “overweight” rating on the stock in a research note on Thursday, July 2nd. UBS Group raised their price target on Ares Capital from $19.00 to $21.00 and gave the stock a “neutral” rating in a research report on Tuesday, September 1st. Truist Financial dropped their price objective on Ares Capital from $22.00 to $21.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Ares Capital in a report on Friday, September 4th. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $20.39.

Trending Headlines about Ares Capital

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

About Ares Capital

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.