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Here's What Key Metrics Tell Us About Ares Capital (ARCC) Q4 Earnings

Zacks Equity Research
·2 min read

Ares Capital (ARCC) reported $640 million in revenue for the quarter ended December 2022, representing a year-over-year increase of 21%. EPS of $0.68 for the same period compares to $0.52 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $577.74 million, representing a surprise of +10.78%. The company delivered an EPS surprise of +21.43%, with the consensus EPS estimate being $0.56.

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 [$M]: $110 million versus $104.97 million estimated by five analysts on average.

  • Other Income [$M]: $15 million versus the five-analyst average estimate of $12.98 million.

  • Capital Structuring Service Fees [$M]: $59 million versus the five-analyst average estimate of $40.95 million.

  • Interest Income From Investments [$M]: $456 million versus $416.69 million estimated by five analysts on average.

View all Key Company Metrics for Ares Capital here>>>

Shares of Ares Capital have returned +5.4% over the past month versus the Zacks S&P 500 composite's +5.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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Zacks Investment Research

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