Ares Capital Set to Report Q3 Earnings: What's in Store for ARCC?

Ares Capital Corporation ARCC is slated to report third-quarter 2025 results on Oct. 28, before the opening bell. Its revenues and earnings are expected to have declined on a year-over-year basis.

In the last reported quarter, ARCC’s earnings missed the Zacks Consensus Estimate. Results were primarily affected by a decline in total investment income and higher expenses. However, the company’s robust portfolio activities offered some support.

Ares Capital has a weak earnings surprise history. The company’s earnings lagged the Zacks Consensus Estimate in each of the trailing four quarters.

ARCC’s Earnings & Sales Projections for Q3

The Zacks Consensus Estimate for ARCC’s earnings is pegged at 50 cents, stable over the past seven days. The figure indicates a 13.8% decrease from the prior-year quarter.

The consensus estimate for sales is pegged at $763.74 million, which suggests a 1.5% fall.

Other Key Estimates for ARCC’s Q3 Earnings

The Zacks Consensus Estimate for interest income from investments (constituting a significant portion of the company’s total investment income) is pegged at $545.92 million, indicating a 3.9% dip from the prior-year quarter. 

The consensus mark for other income is pegged at $17.43 million, indicating a 3.2% fall. 

The consensus estimate for capital structuring service fees is pegged at $41.1 million, implying 8.2% growth. The Zacks Consensus Estimate for dividend income of $153.44 million suggests a 1.6% rise. 

Ares Capital has been witnessing higher expenses over the past several quarters. As the company has been investing in venture growth stage companies, operating costs are expected to have been elevated in the third quarter.

Earnings Whispers for ARCC

Our quantitative model does not conclusively predict an earnings beat for Ares Capital this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: Ares Capital has an Earnings ESP of 0.00%.

Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

Finance Sector Stocks Worth a Look

Here are a couple of finance sector stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:

The Earnings ESP for Invesco IVZ is +2.81% and it carries a Zacks Rank #2 (Buy) at present. The company is scheduled to report its third-quarter 2025 results on Oct. 28.

Over the past 30 days, the Zacks Consensus Estimate for IVZ’s quarterly earnings has been revised 2.3% upward to 45 cents.

UMB Financial UMBF is also scheduled to release third-quarter 2025 earnings on Oct. 28. The company, which carries a Zacks Rank #3, at present, has an Earnings ESP of +0.49%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

UMBF’s quarterly earnings estimates have been revised 1.6% north to $2.48 over the past month.

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This article originally published on Zacks Investment Research (zacks.com).

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