Wall Street analysts expect Ares Capital (ARCC) to post quarterly earnings of $0.54 per share in its upcoming report, which indicates a year-over-year decline of 8.5%. Revenues are expected to be $771.09 million, up 10% from the year-ago quarter.
Over the last 30 days, there has been a downward revision of 0.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
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 a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
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.
The consensus among analysts is that 'Dividend income' will reach $154.25 million. The estimate compares to the year-ago value of $147 million.
The collective assessment of analysts points to an estimated 'Other Income' of $16.73 million. The estimate compares to the year-ago value of $13 million.
The consensus estimate for 'Capital Structuring Service Fees' stands at $46.86 million. Compared to the present estimate, the company reported $28 million in the same quarter last year.
Analysts' assessment points toward 'Interest Income From Investments' reaching $555.08 million. The estimate is in contrast to the year-ago figure of $513 million.
View all Key Company Metrics for Ares Capital here>>>
Over the past month, Ares Capital shares have recorded returns of -6.7% versus the Zacks S&P 500 composite's -5.1% change. Based on its Zacks Rank #3 (Hold), ARCC will likely exhibit a performance that aligns with the overall market in the upcoming period. 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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