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Investors Heavily Search Ares Capital Corporation (ARCC): Here is What You Need to Know
ARCCAres Capital(ARCC) ZACKS·2024-06-07 14:05

Core Viewpoint - Ares Capital (ARCC) has been gaining attention as a highly searched stock, with its recent performance showing a +2.1% return over the past month, compared to the S&P 500's +3.5% and the Zacks Financial - SBIC & Commercial Industry's +0.5% [1] Earnings Estimates - Ares Capital is expected to report earnings of 0.58pershareforthecurrentquarter,unchangedfromthepreviousyear,withaconsensusestimatechangeof+0.20.58 per share for the current quarter, unchanged from the previous year, with a consensus estimate change of +0.2% over the last 30 days [3] - For the current fiscal year, the consensus earnings estimate is 2.34, reflecting a -1.3% change from the prior year, with a +0.1% change in the last 30 days [3] - The next fiscal year's consensus estimate is 2.23,indicatinga4.92.23, indicating a -4.9% change from the previous year, with a +0.5% change over the past month [3] Revenue Growth Forecast - The consensus sales estimate for the current quarter is 714.27 million, representing a year-over-year increase of +12.7% [5] - For the current fiscal year, the revenue estimate is 2.87billion,indicatinga+102.87 billion, indicating a +10% change, while the next fiscal year's estimate of 2.92 billion shows a +1.7% change [5] Last Reported Results and Surprise History - Ares Capital reported revenues of 701millioninthelastquarter,a+13.4701 million in the last quarter, a +13.4% year-over-year increase, with EPS of 0.59 compared to 0.56ayearago[6]ThereportedrevenueswereslightlybelowtheZacksConsensusEstimateof0.56 a year ago [6] - The reported revenues were slightly below the Zacks Consensus Estimate of 701.4 million, resulting in a surprise of -0.06%, while the EPS surprise was 0% [6] - Over the last four quarters, Ares Capital surpassed consensus EPS estimates three times and revenue estimates two times [6] Valuation - Ares Capital's valuation is assessed through multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), which help determine if the stock is fairly valued, overvalued, or undervalued [7] - The Zacks Value Style Score indicates that Ares Capital is graded D, suggesting it is trading at a premium compared to its peers [9]