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Ares Capital Corporation Missed Analysts’ Estimates in 2Q17


Aug. 7 2017, Updated 5:17 p.m. ET

Missing the estimates

Ares Capital Corporation (ARCC) posted its 2Q17 earnings report on August 2, 2017. The company reported its core earnings per share (or EPS) of $0.34 per share, missing the analysts’ estimate of $0.36 per share. On a sequential basis, the company witnessed a marginal increase of ~6.3% in its core EPS. 

Ares Capital Corporation also posted revenues of $284.0 million in 2Q17, which misses the analysts’ estimate of ~$297.2 million. The net asset value of Ares Capital on June 30, 2017, stood at $16.54 per share.

Ares Capital’s assets under management (or AUM) on June 30, 2017, stood at $12.3 billion. The company entered into new commitments of $1.9 billion in 2Q17, which includes 12 new commitments. 

These commitments include two portfolio companies in which commitments were made through SDLP (Senior Direct Lending Program), LLC and 33 existing companies.

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Market capitalization

The market capitalization of Ares Capital Corporation (ARCC) stood at ~$7.0 billion, on August 2, 2017. Other investment management companies (XLF) have the following market capitalization levels:

  • BlackRock Capital Investment (BKCC): $0.54 billion
  • Prospect Capital (PSEC): ~$2.9 billion
  • KKR & Co. (KKR): ~$15.7 billion

Moving forward, we’ll have a look into Ares Capital’s loan portfolio purchases, its exits in 2Q17, its dividend distribution, its valuations, and analysts’ ratings on the company.


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