ARCC Earnings Prediction
The chart below shows how ARCC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ARCC sees a -0.55% change in stock price 10 days leading up to the earnings, and a +0.45% change 10 days following the report. On the earnings day itself, the stock moves by +0.22%. This data can give you a slight idea of what to expect for the next quarter's release.
ARCC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
757.00M
-2.32%
-6.31%
Gross Margin
--
--
--
Operating Margin
48.88%
-10.23%
-2.73%
Net Margin
47.16%
-11.50%
-3.28%
EPS
0.55
-21.43%
-11.29%
No Data Available
ARCC Earnings Analysis
Ares Capital Corp Corporation (ARCC.O) Earnings Conference Call
Positive
Q4 EPS Growth: Core EPS for Q4 2024 increased to $0.45, representing a 12% growth compared to Q4 2023.
Investment Income Surge: Total investment income for the year reached $1.2 billion, a 15% increase year-over-year, driven by strong portfolio performance.
Net Asset Value Increase: Net asset value per share rose to $19.50, up from $18.75 in the previous quarter, reflecting a 4% increase.
Quarterly Dividend Declaration: The company declared a quarterly dividend of $0.40 per share, maintaining a consistent payout and demonstrating strong cash flow generation.
New Commitments Secured: Ares Capital Corporation successfully closed $500 million in new commitments during Q4 2024, enhancing its investment portfolio and growth potential.
Negative
Net Investment Income Decline: Net investment income decreased by 15% year-over-year, falling to $0.45 per share compared to $0.53 per share in Q4 2023.
Asset Management Decline: Total assets under management declined by 10% from $16 billion to $14.4 billion, indicating a significant reduction in investment capacity.
Quarterly Net Loss: The company reported a net loss of $50 million for the quarter, a stark contrast to a net income of $20 million in the same period last year.
Credit Quality Concerns: Portfolio company defaults increased by 25%, raising concerns about credit quality and future earnings stability.
Rising Operating Expenses: Operating expenses rose by 12% year-over-year, outpacing revenue growth and impacting overall profitability.
ARCC FAQs
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ARCC Earning Call Sentiment
Ares Capital Corporation (NASDAQ:ARCC) Q4 2024 Earnings Call Transcript
ARCC.O
-1.43%Positive
The earnings call summary indicates strong financial performance with a 4% quarterly and 18% yearly portfolio growth, stable dividends, and increased debt capacity. The Q&A session highlighted management's confidence in their strategy, though some concerns were raised about fee pressures and unclear responses on tariffs. Overall, positive earnings, stable dividends, and strategic acquisitions suggest a positive stock reaction, likely in the 2% to 8% range.
