Ares Capital (ARCC) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

By Zacks Equity Research | April 29, 2025, 9:30 AM

Ares Capital (ARCC) reported $732 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 4.4%. EPS of $0.50 for the same period compares to $0.59 a year ago.

The reported revenue represents a surprise of -4.97% over the Zacks Consensus Estimate of $770.26 million. With the consensus EPS estimate being $0.54, the EPS surprise was -7.41%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Ares Capital performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Dividend income: $143 million compared to the $154.25 million average estimate based on four analysts.
  • Other Income: $17 million compared to the $16.73 million average estimate based on four analysts.
  • Capital Structuring Service Fees: $46 million versus $46.86 million estimated by four analysts on average.
  • Interest Income from Investments: $526 million versus the four-analyst average estimate of $553.84 million.
View all Key Company Metrics for Ares Capital here>>>

Shares of Ares Capital have returned -4.1% over the past month versus the Zacks S&P 500 composite's -0.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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

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