The upcoming report from Ares Capital (ARCC) is expected to reveal quarterly earnings of $0.51 per share, indicating a decline of 16.4% compared to the year-ago period. Analysts forecast revenues of $746.71 million, representing a decline of 1.1% year over year.
Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Bearing this in mind, let's now explore the average estimates of specific Ares Capital metrics that are commonly monitored and projected by Wall Street analysts.
Based on the collective assessment of analysts, 'Dividend income' should arrive at $143.98 million. Compared to the current estimate, the company reported $143.00 million in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Other Income' of $16.80 million. Compared to the present estimate, the company reported $15.00 million in the same quarter last year.
The consensus among analysts is that 'Capital Structuring Service Fees' will reach $46.86 million. The estimate compares to the year-ago value of $58.00 million.
Analysts' assessment points toward 'Interest Income from Investments' reaching $536.84 million. The estimate is in contrast to the year-ago figure of $539.00 million.
View all Key Company Metrics for Ares Capital here>>>
Shares of Ares Capital have experienced a change of +7% in the past month compared to the +5.7% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), ARCC is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Ares Capital Corporation (ARCC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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