There was plenty of news about Ares Capital (ARCC -2.98%) on Wednesday, but investors didn't generally consider it to be good. Following the release of the company's latest set of earnings and an announcement regarding a leadership transition, the market largely shunned the stock.
Ares Capital Corporation (NASDAQ:ARCC ) Q4 2025 Earnings Conference Call February 5, 2025 12:00 PM ET Company Participants John Stilmar - Partner of Ares Public Markets IR Kipp DeVeer - CEO Kort Schnabel - Upcoming CEO Scott Lem - CFO Jim Miller - Co-President Conference Call Participants Melissa Wedel - JPMorgan Finian O'Shea - Wells Fargo Securities Casey Alexander - Compass Point Doug Harter - UBS Mark Hughes - Truist Securities Kenneth Lee - RBC Capital Markets Paul Johnson - KBW Robert Dodd - Raymond James Operator Good afternoon, and welcome to Ares Capital Corporation's Fourth Quarter and Year Ended December 31, 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode.
While the top- and bottom-line numbers for Ares Capital (ARCC) give a sense of how the business performed in the quarter ended December 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Ares Capital (ARCC) came out with quarterly earnings of $0.55 per share, missing the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.63 per share a year ago.
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Here is how Ares Capital (ARCC) and American Express (AXP) have performed compared to their sector so far this year.
Get a deeper insight into the potential performance of Ares Capital (ARCC) for the quarter ended December 2024 by going beyond Wall Street's top -and-bottom-line estimates and examining the estimates for some of its key metrics.
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In the closing of the recent trading day, Ares Capital (ARCC) stood at $23.42, denoting a +1.04% change from the preceding trading day.
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ARCC's strong earnings, strategic acquisitions, and robust NII position it as the gold standard in the BDC market, justifying its premium valuation. Despite trading at a premium to NAV, ARCC's consistent dividend yield of over 8% and potential for capital appreciation make it an attractive investment. ARCC's diversified portfolio, focus on senior secured loans, and significant liquidity provide a competitive edge and mitigate downside risks.