|
|
|
|
|||||
|
|
|
Ares Capital Corporation’s ARCC second-quarter 2025 core earnings of 50 cents per share missed the Zacks Consensus Estimate by a penny. The bottom line also reflected a decline of 18% from the prior-year quarter.
The results were primarily hurt by a decline in total investment income and higher expenses. Nonetheless, the company’s robust portfolio activities offered some support.
GAAP net income was $361 million or 52 cents per share compared with $322 million or 52 cents per share in the prior-year quarter.
Total investment income was $745 million, down 1.3% year over year. The fall was largely due to a decline in interest income from investments and capital structuring service fees. The top line lagged the Zacks Consensus Estimate of $746.7 million.
Total quarterly expenses were $395 million, up 11% year over year. The rise was mainly due to higher interest and credit facility fees, and base management fee.
In the second quarter, the company made gross commitments worth $2.57 billion to new and existing portfolio companies compared with $3.86 billion in the prior-year quarter.
The company exited $1.96 billion of commitments compared with $1.38 billion a year ago.
The fair value of Ares Capital’s portfolio investments was $27.9 billion as of June 30, 2025.
The fair value of accruing debt and other income-producing securities was $24.8 billion.
As of June 30, 2025, the company’s cash and cash equivalents totaled $447 million, down from $635 million as of Dec. 31, 2024.
Ares Capital had $6.8 billion available for additional borrowings under the existing credit facilities as of June 30, 2025. Total outstanding debt was $14.1 billion.
As of June 30, 2025, total assets were $29.1 billion and stockholders’ equity was $14 billion.
Net asset value was $19.90 per share, up from $19.89 as of Dec. 31, 2024.
Driven by the rise in the demand for customized financing, growth in total investment income is expected in the near term. Increased investment commitments will likely keep supporting ARCC’s financials. However, its expansion strategies may lead to a rise in costs in the near term. Regulatory constraints pose another major headwind.
Ares Capital Corporation price-consensus-eps-surprise-chart | Ares Capital Corporation Quote
Currently, ARCC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hercules Capital, Inc. HTGC is slated to report second-quarter 2025 numbers on July 31.
Over the past seven days, the Zacks Consensus Estimate for Hercules Capital’s quarterly earnings has been unchanged at 47 cents. The estimate indicates a 7.8% decline from the prior-year quarter’s actual.
Main Street Capital MAIN is scheduled to announce second-quarter 2025 results on August 7.
Over the past seven days, the Zacks Consensus Estimate for Main Street Capital’s quarterly earnings has been unchanged at 99 cents. This implies a 2% fall from the prior-year quarter’s actual.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| 1 hour | |
| 3 hours | |
| 4 hours | |
| Jul-30 | |
| Jul-30 | |
| Jul-30 | |
| Jul-29 | |
| Jul-29 | |
| Jul-29 | |
| Jul-29 | |
| Jul-29 | |
| Jul-28 | |
| Jul-27 | |
| Jul-25 | |
| Jul-25 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite