Ares Capital (ARCC) Lags Q1 Earnings and Revenue Estimates

Company Performance - Ares Capital reported quarterly earnings of $0.50 per share, missing the Zacks Consensus Estimate of$ 0.54 per share, and down from $0.59 per share a year ago, representing an earnings surprise of -7.41% [1] - The company posted revenues of$ 732 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 4.97%, compared to year-ago revenues of $701 million [2] - Over the last four quarters, Ares Capital has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Market Outlook - Ares Capital shares have lost about 2.9% since the beginning of the year, while the S&P 500 has declined by 6% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimate for the coming quarter at$ 0.54 on revenues of $780.46 million, and$ 2.17 on $3.15 billion in revenues for the current fiscal year [7] Industry Context - The Financial - SBIC & Commercial Industry, to which Ares Capital belongs, is currently in the bottom 44% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Ares Capital's stock performance [5]