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

Zacks
02-05

Ares Capital (ARCC) reported $759 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 7.4%. EPS of $0.55 for the same period compares to $0.63 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $784.96 million, representing a surprise of -3.31%. The company delivered an EPS surprise of -5.17%, with the consensus EPS estimate being $0.58.

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: $153 million versus $146.30 million estimated by four analysts on average.
  • Other Income: $16 million versus $17.11 million estimated by four analysts on average.
  • Capital Structuring Service Fees: $48 million versus the four-analyst average estimate of $43.34 million.
  • Interest Income From Investments: $542 million compared to the $579.34 million average estimate based on four analysts.
View all Key Company Metrics for Ares Capital here>>>

Shares of Ares Capital have returned +7.9% over the past month versus the Zacks S&P 500 composite's +1.7% 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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