Weakness in gross commitments and lower portfolio exits hurt ARCC's Q1 earnings, while higher total investment income offers some support.
Although the revenue and EPS for Ares Capital (ARCC) give a sense of how its business performed in the quarter ended March 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Ares Capital (ARCC) came out with quarterly earnings of $0.50 per share, missing the Zacks Consensus Estimate of $0.54 per share. This compares to earnings of $0.59 per share a year ago.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
I transitioned from traditional S&P 500 index funds to high-yield dividend assets to build a more secure income stream. I eventually crossed an average above $3K per month. Business Development Companies like Ares Capital and Blackstone Secured Lending offer high dividend yields, making them attractive for income-focused portfolios. Option ETFs, such as JPMorgan Equity Premium Income ETF, provide substantial income but may underperform traditional indexes in total return.
Despite expected volatility and potential recession, Ares Capital, Blackstone Secured Lending, and Morgan Stanley Direct Lending are likely to maintain their current dividends in 2025. Ares Capital's conservative fiscal strategy, solid dividend coverage, and investment-grade credit ratings position it well for the year ahead. Blackstone Secured Lending's defensively-positioned portfolio and robust liquidity make it a strong contender, despite lower interest rates potentially impacting the sector.
There are warning signs in the private credit. Ares Capital faces risks due to high exposure to vulnerable sectors like healthcare and software, rising interest receivables. Refinancing challenges in a higher-for-longer rates environment and mixed recession signals further exacerbate concerns. In the upcoming Q1 FY25 earnings report, portfolio quality metrics and commentary on default risks, as well as implications in a recession, are key monitorables.
It's easy to tune out the worries of the world when your life is surrounded by cash flowing in from the market. We examine two strong income opportunities with over 2 decades of paying history. High yields can greatly reduce the stress caused by price movements.
Ares Capital (ARCC) closed the most recent trading day at $21.10, moving +1.69% from the previous trading session.
Besides Wall Street's top -and-bottom-line estimates for Ares Capital (ARCC), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended March 2025.
Ares Capital (ARCC 1.74%) is often considered a reliable income investment. It's the world's largest business development company (BDC), with a $26.8 billion portfolio at the end of 2024, and it pays out most of its profits as dividends.
One 7%+ yielding dividend growth fund has never cut its dividend—even through 2008 and 2020. Another utility-like stock yields 6% along with very strong dividend growth. A market-crushing blue-chip stock yields over 9% today.