Wall Street analysts expect Ares Capital (ARCC) to post quarterly earnings of $0.50 per share in its upcoming report, which indicates a year-over-year decline of 9.1%. Revenues are expected to be $795.35 million, up 4.8% from the year-ago quarter.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
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.
Analysts expect 'Dividend income' to come in at $152.09 million. Compared to the present estimate, the company reported $153.00 million in the same quarter last year.
According to the collective judgment of analysts, 'Other Income' should come in at $17.85 million. The estimate is in contrast to the year-ago figure of $16.00 million.
The combined assessment of analysts suggests that 'Capital Structuring Service Fees' will likely reach $51.37 million. The estimate is in contrast to the year-ago figure of $48.00 million.
It is projected by analysts that the 'Interest Income from Investments' will reach $570.68 million. Compared to the current estimate, the company reported $542.00 million in the same quarter of the previous year.
View all Key Company Metrics for Ares Capital here>>>
Ares Capital shares have witnessed a change of -0.4% in the past month, in contrast to the Zacks S&P 500 composite's +0.9% move. With a Zacks Rank #3 (Hold), ARCC is expected closely follow the overall market performance in the near term. 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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