Ares Capital umístila veřejnou nabídku nezajištěných dluhopisů za 750 milionů USD s kuponem 6,250 % a splatností 15. září 2033. Čistý výnos použije na splacení části dluhu.
, /PRNewswire/ -- Ares Capital Corporation (Nasdaq: ARCC) announced that it has priced an underwritten public offering of $750 million in aggregate principal amount of 6.250% notes due 2033. The notes will mature on September 15, 2033 and may be redeemed in whole or in part at Ares Capital's option at any time at par plus a "make-whole" premium, if applicable.
BofA Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., Wells Fargo Securities, LLC, Barclays Capital Inc., CIBC World Markets Corp., Mizuho Securities USA LLC, MUFG Securities Americas Inc., TD Securities (USA) LLC, Truist Securities, Inc. and U.S. Bancorp Investments, Inc. are acting as joint book-running managers for this offering. BNP Paribas Securities Corp., Capital One Securities, Inc., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, Regions Securities LLC, SG Americas Securities, LLC, BNY Mellon Capital Markets, LLC, Credit Agricole Securities (USA) Inc., Goldman Sachs & Co. LLC, ICBC Standard Bank Plc and Natixis Securities Americas LLC are acting as joint lead managers for this offering. Ares Management Capital Markets LLC, Deutsche Bank Securities Inc., ING Financial Markets LLC, R. Seelaus & Co., LLC, Academy Securities, Inc., Citigroup Global Markets Inc., Keefe, Bruyette & Woods, Inc., Loop Capital Markets LLC, Samuel A. Ramirez & Company, Inc. and Siebert Williams Shank & Co., LLC are acting as co-managers for this offering. The offering is expected to close on September 15, 2026, subject to customary closing conditions.
Ares Capital expects to use the net proceeds of this offering to repay certain outstanding indebtedness under its debt facilities. Ares Capital may reborrow under its debt facilities for general corporate purposes, which include investing in portfolio companies in accordance with its investment objective.
Investors are advised to carefully consider the investment objective, risks, charges and expenses of Ares Capital before investing. The pricing term sheet dated September 8, 2026, the preliminary prospectus supplement dated September 8, 2026, and the accompanying prospectus dated May 1, 2024, each of which have been filed with the Securities and Exchange Commission, contain this and other information about Ares Capital and should be read carefully before investing.
The information in the pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. The pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release are not offers to sell any securities of Ares Capital and are not soliciting an offer to buy such securities in any jurisdiction where such offer and sale is not permitted.
The offering may be made only by means of a preliminary prospectus supplement and an accompanying prospectus. Copies of the preliminary prospectus supplement (and accompanying prospectus) may be obtained from
Prospectus Department, or by calling 1-800-294-1322, or email [email protected]; J.P. Morgan Securities LLC, 270 Park Avenue, New York, NY 10017, Attn: Investment Grade Syndicate Desk, 212-834-4533; RBC Capital Markets, LLC, Brookfield Place, 200 Vesey Street, 8th Floor, New York, NY 10281, by toll-free telephone at 1-866-375-6829 or email [email protected]; SMBC Nikko Securities America, Inc. at 277 Park Avenue, New York, New York 10172, Attn: [email protected]; or Wells Fargo Securities, LLC at 1-800-645-3751.
ABOUT ARES CAPITAL CORPORATION
Founded in 2004, Ares Capital is a leading specialty finance company focused on providing direct loans and other investments in private middle market companies in the United States. Ares Capital's objective is to source and invest in high-quality borrowers that need capital to achieve their business goals, which oftentimes can lead to economic growth and employment. Ares Capital believes its loans and other investments in these companies can help generate attractive levels of current income and potential capital appreciation for investors. Ares Capital, through its investment manager, utilizes its extensive, direct origination capabilities and incumbent borrower relationships to source and underwrite predominantly senior secured loans but also subordinated debt and equity investments. Ares Capital has elected to be regulated as a business development company ("BDC") and was the largest publicly traded BDC by market capitalization as of June 30, 2026. Ares Capital is externally managed by a subsidiary of Ares Management Corporation (NYSE: ARES), a publicly traded, leading global alternative investment manager.
FORWARD-LOOKING STATEMENTS
Statements included herein may constitute "forward-looking statements," which relate to future events or Ares Capital's future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results and conditions may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Ares Capital's filings with the Securities and Exchange Commission. Ares Capital undertakes no duty to update any forward-looking statements made herein.
INVESTOR RELATIONS CONTACTS
Ares Capital Corporation
John Stilmar or Carl Drake
888-818-5298
[email protected]
Ares Capital má nyní nesplácené úvěry ve výši 2,4 % investic v amortizované pořizovací ceně, což je více než 2,1 % po přidání čtyř nových úvěrů. To dál tlačí na jeho dividendu, jejíž výnos se nedávno pohyboval kolem 9,6 %.
Shares of Ares Capital (ARCC +0.15%) have fallen about 10% from their 52-week high ($22.51) to their current level of around $20 per share. That has pushed its dividend yield up near 10% (recently around 9.6%). Several factors have driven the slump, including rising interest rates, Ares' falling core earnings, and an uptick in non-accruals. That last number worries me a bit because it relies on receiving interest payments to pay its high-yielding dividend.
While the trend in non-accruals is concerning, it's not a major red flag yet, just something I plan to keep an eye on. Here's why it wouldn't make me sell the high-yielding business development company (BDC) stock just yet.
Image source: Getty Images.
Why a rise in non-accruals is slightly worrisomeAres Capital noted in its second-quarter report that loans on non-accrual status represented 2.4% of its total investments at amortized cost (or 1.4% at fair value). That's up from 2.1% after the company added four loans to the non-accrual list during the quarter. That's a concern because a rise in non-accrual loans can indicate early stress in an underlying loan portfolio. If this trend continues, it could put the dividend at risk.
On a more positive note, the company highlighted on the quarterly conference call that these four new non-accrual loans were from companies operating in different industries and were unrelated to one another. CEO Kort Schnabel commented on the call that "We are not able to discern any trends yet around certain industries that are experiencing any kind of outsized weakness or leading us down this path toward more credit normalization."
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Meanwhile, President Jim Miller highlighted on the call that its non-accrual rate was still below its historical average of 3% since the global financial crisis. Further, it remains well below the historical average of BDCs, which has been around 4% during this time frame. However, Miller did repeat his warning on the call that while the company has been operating in an extended period of lower non-accrual rates and defaults, "we think there is a reversion toward the mean there." This suggests this concerning trend will continue.
Why I'm not concerned enough to sellWhile a rising non-accrual rate is somewhat troubling, Ares Capital has a strong track record of navigating the ebbs and flows of the credit market. It's the biggest BDC with a $29.3 billion investment portfolio spread across 619 portfolio companies. Its top 10 investments represent 10.5% of its portfolio at fair value, more than half the concentration of its BDC peers (22.2%). That diversification helps reduce risk. Further, it has an excellent investment record. Throughout its 21-year history, realized gains have outpaced losses by over $1 billion, averaging about 1% per year. That has helped support its 17-year track record of delivering a stable-to-growing dividend.
Those gains have given it a bigger cushion to support its dividend than its core earnings suggest. Ares Capital's core earnings of $0.94 per share through the first half of this year were down from $1.00 per share in the year-ago period. That put them below its dividend payments of $0.96 per share. However, it has recorded an additional $0.15 per share of net realized gains over the last 12 months, providing further support for the dividend. That has added to the gains it has banked over the years. It currently has $1.38 per share of taxable spillover income it carried forward from last year for distribution in future periods.
Here's what would worry me enough to sellWhile this quarter's uptick in non-accruals is slightly troublesome, I'm not concerned enough to sell. It's still below the company's historical average. Further, Ares has a strong record of delivering realized gains, which has supported 17 years of dividend stability. That's why I'd continue to buy shares of Ares Capital for its high-yielding dividend. It's still a relatively small position for me, and I'd like to continue building it to grow my passive income.
However, what would really start worrying me is if its non-accruals surpass its historical average. That would likely lead to a larger dip in core earnings and require the company to use more of its cushion. If the dividend ever looked at risk, I'd consider selling Ares and reinvesting the proceeds into a higher-quality, high-yielding dividend stock.
Ares Capital vyplatí za třetí čtvrtletí dividendu 0,48 USD na akcii, zatímco čistý investiční výnos činil 0,50 USD na akcii. Krytí dividendy se tak ztenčilo na dva centy.
Ares Capital (ARCC +1.99%) is likely to be most attractive to income investors, given its lofty 9.9% dividend yield. To put that into perspective, the yield of the S&P 500 index (^GSPC +0.62%) is a tiny 1%. That said, a yield that high comes with risks that have to be fully understood. Which is why it is important for investors to consider the business development company's (BDC's) second-quarter results in a larger context.
How did Ares Capital do in the second quarter? Ares Capital began its second-quarter earnings update by announcing the third-quarter dividend: $0.48 per share. That's the same level that has been paid since the fourth quarter of 2022. So it wasn't a particularly shocking update. But the BDC's net investment income was $0.50 per share, leaving only a two-cent cushion for the dividend.
Image source: Getty Images.
In the first quarter, the business development company generated $0.55 per share of net investment income. The key takeaway is that this number moves around a little bit, so you need to look at a longer time period before making a call on Ares Capital's dividend-paying ability.
For example, in 2025, Ares Capital's net investment income totaled to $2.02 per share while it paid out $1.92 in dividends. During the year, net investment income ranged between $0.58 per share and $0.48 per share on a quarterly basis. Clearly, the board isn't deciding the dividend based on one quarter's results. Still, that doesn't mean that investors shouldn't be worried.
Looking at the longer-term net investment income trend That said, looking back to 2023 changes the dynamic a little bit. The company has paid the same $1.92 per share in annual dividends since that year. However, in 2023, the net investment income totaled $2.28 per share. In 2024, the company reported that net investment income dipped slightly to $2.25 per share, which still suggested ample dividend safety. But in 2025, net investment income fell to $2.02 per share. That's cutting things a lot closer, making the first half of 2026 a bit more troubling. Investors should be paying closer attention.
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Still, through the first half of 2025, the company generated $1.03 per share in net investment income, compared with $1.05 per share in the first half of 2026. From that perspective, the BDC's results are improving.
The bigger risk is a recession What is likely to be more important in the near term is the quality of the company's loan portfolio. The bad news is that non-accrual loans inched up to 2.4% of the portfolio in the second quarter, from 1.8% at the start of the year. The good news is that 2.4% isn't a terrible number. However, dividend risk appears to be rising here, and a recession, which would likely increase the number of non-accrual loans and reduce net investment income, could easily force the company to consider a dividend cut, given the drop in dividend coverage from 2023.
Blue Owl Capital snížila základní dividendu na 0,31 USD na akcii za čtvrtletí, aby odpovídala budoucí výdělečné síle portfolia. Adjusted NII na akcii klesl na 0,31 USD z 0,36 USD.
Blue Owl Capital (OBDC -0.37%) had little choice but to cut its dividend. As management explained, the cut was made to align the dividend "with the portfolio's go-forward earnings power." To be fair, dividend cuts are fairly normal for business development companies (BDCs), so this isn't a sign that Blue Owl Capital is specifically in any trouble.
That fact is a problem for the rest of the BDC sector, which faces the same headwinds as Blue Owl Capital. This is why investors should be watching closely as peers like Main Street Capital (MAIN -0.06%), Ares Capital Corporation (ARCC -0.37%), and FS KKR Capital (FSK +0.10%) report their results. Here's what to watch.
Image source: Getty Images.
Why did Blue Owl Capital cut? Blue Owl Capital's first-quarter results weren't exactly bad. However, they weren't entirely good, either. The base dividend reduction from $0.37 per quarter to $0.31 essentially reduced the payment to the company's first-quarter adjusted net investment income (NII) per share. Adjusted NII dropped from $0.36 per share in the first quarter of 2025 to $0.31 per share in the first quarter of 2026.
That wasn't driven by bad loans, which is a key factor investors need to consider. The BDC's non-accrual loans as a percent of the total portfolio actually declined to 1% at the end of the first quarter from 1.1% at the end of 2025. That's really not a huge improvement, but it highlights that credit quality isn't the issue.
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The bigger problem was the changing interest rate environment. The average rate on Blue Owl Capital's loans was 11.1% at the end of 2024. It fell to 10.7% in the first quarter of 2025. And by the first quarter of 2026, it was down to 10%. Basically, the BDC was earnings less income.
On top of that, the portfolio's value has been declining. The company noted that, "Net asset value per share of $14.41, as compared with $14.81 as of December 31, 2025, primarily reflecting the impact of credit spread widening on the portfolio." A year ago, NAV per share was $15.14. That's a problem to watch, too.
Blue Owl Capital isn't alone Starting with interest rates, Main Street Capital's average rate on private loans in the first quarter was 10.3%, down from 11.4% a year earlier. The BDC's distributable net investment income per share before taxes fell from $1.07 in the first quarter of 2025 to $1.04 in the first quarter of 2026. Its net asset value per share, however, increased from $32.03 to $33.46. Main Street Capital typically gets equity stakes in the companies it loans to, so this improvement isn't surprising. Non-accrual loans fell from 1.7% of the portfolio to 1.2%. With a base dividend of $0.795 per share per quarter, it is unlikely that Blue Owl Capital will need to lower its base dividend.
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Ares Capital Corporation already reported second-quarter 2026 results. It didn't cut its dividend, but investors should probably keep a close eye on the BDC. The average interest rate on loans fell year over year, going from 10.9% in the second quarter of 2025 to 10.3% this year. Net investment income per share was $0.50 in the second quarter of 2026, up a penny year over year and enough to cover the $0.48 per share dividend. That said, NAV per share fell from $19.90 in 2025 to $19.35. And non-accrual loans moved in the wrong direction, rising from 2% of the portfolio to 2.4%. It would be advisable for dividend investors to continue to closely monitor Ares Capital Corporation.
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In the first quarter of 2025, the average interest rate on FS KKR Capital's portfolio was 11%. In the first quarter of 2026, it had fallen to 9.9%. Adjusted net investment income per share was $0.41, down from $0.65 in the first quarter of 2025. FS KKR Capital paid dividends of $0.48 per share in the first quarter, down from $0.70 in the same quarter of 2025. The base dividend accounted for $0.45 of the first-quarter total in 2026, and it has already been cut again to $0.42, with no variable dividend announced. So the dividend has already been cut here, but that doesn't mean there won't be more downside.
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Notably, the NAV fell to $18.83 per share from $20.89 at the end of 2025. That's a material decline in a very short period of time. A year ago, the NAV was $23.37. Shockingly, non-accrual loans rose to 4.2% of the portfolio from 2.1% in the first quarter of 2025. That's the wrong direction and a massive increase in troubled loans. The second-quarter results should be closely monitored to see if the trends remain negative. Given the dividend cut already announced, it seems likely the quarterly results will be a tough read.
There's information in the yield If you check online quote services, FS KKR Capital's yield is listed at over 20%. That's a sign that investors are worried about the stock, and there's good reason. Compare that to Main Street's yield of around 6%, and you can see the difference in risk right away. Ares Capital's yield is 10%, while Blue Owl Capital's yield is 13%. As investors know very well, there's an interplay between risk and reward on Wall Street. But if you take on too much risk in the BDC space, your reward could be a dividend cut. Tread carefully and err on the side of caution, even if it means buying the lowest-yielding BDC.
ARCC ve 2. čtvrtletí splnila odhad EPS 47 centů na akcii, ale vyšší náklady a nerealizované ztráty stlačily čistý zisk. Akcie po zveřejnění výsledků klesly o 1,7 %.
Key Takeaways ARCC matched Q2 earnings estimates as higher expenses and unrealized losses weighed on results.Ares Capital's investment income rose on higher interest income and capital structuring service fees.ARCC made $2.59B in gross commitments and exited $2.92B as portfolio activity stayed robust. Shares of Ares Capital Corporation (ARCC - Free Report) lost 1.7% following the release of its second-quarter 2026 results. Core earnings of 47 cents per share met the Zacks Consensus Estimate. The bottom line fell 6% from the prior-year quarter.
The reported quarter’s results were primarily hurt by an increase in expenses. However, an increase in interest income from investments, along with higher capital structuring service fees, supported the results to an extent. Robust portfolio activity was another tailwind.
GAAP net income was $171 million or 24 cents per share, down from $361 million or 52 cents per share in the prior-year quarter. The decline was primarily due to a significant increase in net unrealized losses on ARCC’s investment portfolio. Net realized gains also deteriorated, swinging from a $34-million gain in second-quarter 2025 to a $5-million loss in second-quarter 2026.
ARCC’s Total Investment Income Improves, Expenses RiseTotal investment income was $768 million, up 3.1% year over year. This was driven by higher interest income from investments and capital structuring service fees, partly offset by lower dividend income and other income. The top line marginally lagged the Zacks Consensus Estimate of $769 million.
Total expenses were $401 million, up 1.5% from the prior-year quarter.
ARCC’s Portfolio Activities RobustIn the second quarter, the company made gross commitments worth $2.59 billion to new and existing portfolio companies compared with $2.57 billion in the prior-year quarter.
The company exited $2.92 billion of investment commitments in the reported quarter compared with $1.96 billion a year ago.
The fair value of Ares Capital’s portfolio investments was $29.35 billion as of June 30, 2026, down from the Dec. 31, 2025, value of $29.49 billion.
The fair value of accruing debt and other income-producing securities was $26.26 billion as of June 30, 2026.
Ares Capital’s Balance Sheet StrongAs of June 30, 2026, the company’s cash and cash equivalents totaled $383 million, plummeting from $638 million as of Dec. 31, 2025.
Ares Capital had $6.7 billion available for additional borrowings under the existing credit facilities as of June 30, 2026. Total outstanding debt was $15.9 billion.
As of June 30, 2026, total assets were $30.5 billion and stockholders’ equity was $13.9 billion.
Net asset value was $19.35 per share, down from $19.94 as of Dec. 31, 2025.
Our Take on ARCCDriven by the rise in demand for customized financing, growth in total investment income is expected to continue in the near term. However, the company’s expansion strategies may lead to a rise in costs in the near term. Regulatory constraints pose another major headwind.
Currently, ARCC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates & Expectations for ARCC’s PeersFS KKR Capital Corp. (FSK - Free Report) is slated to report quarterly numbers on Aug. 6.
Over the past seven days, the Zacks Consensus Estimate for FSK’s quarterly earnings has been unchanged at 41 cents.
Main Street Capital (MAIN - Free Report) is also scheduled to announce quarterly results on Aug. 6.
Over the past seven days, the Zacks Consensus Estimate for Main Street Capital’s quarterly earnings has been unchanged at $1.01.
Ares Capital vykázala ve 2. čtvrtletí upravený zisk 0,47 USD na akcii beze změny a GAAP čistý zisk 0,24 USD na akcii, zatímco oznámila dividendu 0,48 USD na akcii.
3 High-Yield Dividend Stocks With Real Capital Gains Potential in 2026Ares Capital NASDAQ: ARCC reported second-quarter core earnings of $0.47 per share, unchanged from the prior quarter, while GAAP net income rose to $0.24 per share from $0.13 in the first quarter. Chief Executive Officer Kort Schnabel said the company’s core earnings represented an annualized return on equity of 9.7% and reflected healthy portfolio performance despite subdued market activity.
The business development company said its portfolio continued to show organic weighted-average last-12-month EBITDA growth of about 8%, in line with its 10-year average. Schnabel said interest coverage, leverage and revolving-credit-facility utilization among portfolio companies remained near historical averages, while borrowers maintained average equity cushions of more than 50% below Ares Capital’s investments.
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Portfolio and Credit Performance Maximize Your Returns: 3 Dividend Stocks With Yields Over 5%Ares Capital ended the quarter with investments totaling $29.7 billion at cost and a portfolio valued at $29.3 billion at fair value, down slightly from $29.5 billion in the first quarter. Chief Financial Officer Scott Lem attributed the change principally to mark-to-market valuation adjustments and net repayment activity.
Net asset value was $13.9 billion, or $19.35 per share, down $0.24 per share sequentially. Lem said the company has increased NAV per share by more than 30% since inception while paying stable dividends.
3 Dividend-Yielding Stocks Too Cheap to Pass UpNon-accrual investments represented 2.4% of the portfolio at cost and 1.4% at fair value at quarter-end. President Jim Miller said the cost-based non-accrual rate remained below the company’s approximately 3% historical average since the global financial crisis and below an approximately 4% historical average for the BDC industry over the same period.
Management expects industry credit conditions to continue normalizing toward longer-term averages, though it said performance differences among managers have widened. Schnabel said Ares Capital added four investments to non-accrual during the quarter, but the companies were in unrelated businesses and did not indicate a sector-specific trend.
In response to questions about challenged portfolio companies, Schnabel said the company’s preference is for sponsors to provide additional capital and work with lenders rather than for Ares Capital to take control of businesses. He said the company is prepared to take control when necessary and views that capability as a competitive advantage.
Origination Activity and Market Conditions Ares Capital originated $2.6 billion of new investment commitments during the quarter across 20 industries and 38 sub-industries. About 75% of transactions involved existing borrowers, which management said demonstrated the value of its incumbent borrower and sponsor relationships.
While overall market transaction activity remained muted, Schnabel said Ares reviewed more than 25% more transactions than in the prior quarter. June was one of the company’s strongest months for transactions reviewed in the past two years, and management said the increased activity continued into July.
Miller said new senior loan commitments during the quarter carried average spreads 20 basis points wider than in the fourth quarter of 2025, while average upfront fees were 50 basis points higher. He said market terms had improved, particularly in the upper middle market, where fewer lenders have the scale to compete for larger transactions.
Schnabel said Ares Capital’s closing ratio was moderately below its historical average of roughly 5%, reflecting continued selectivity amid lower-quality deal flow earlier in the quarter. Management said it has recently seen deal quality improve alongside rising transaction volume.
The company said it committed to a nearly $2 billion credit facility during the second quarter, initially providing the full commitment before reducing its position. Schnabel said the ability to underwrite commitments of that size can create opportunities for higher fees and economics.
Management also said interest-rate volatility can be more disruptive to deal activity than the absolute level of rates, because buyers and sellers face more difficulty modeling financing costs under a wide range of potential rate outcomes.
Software and AI Exposure Schnabel said Ares Capital’s software investments continued to produce organic EBITDA growth above the broader portfolio average during the second quarter. The company has one small software loan on non-accrual and said its software debt investments have loan-to-value ratios in the low 40% range.
The company reiterated that its independent review of software-oriented portfolio companies found limited overall AI-related risk. Less than 50 basis points of the portfolio’s fair value was attributed to software investments considered higher AI risk, while less than 4% was attributed to medium or higher AI risk investments. Management said companies classified as medium risk were performing in line with the overall portfolio.
Liquidity, Funding and Dividend Ares Capital reported debt-to-equity leverage, net of available cash, of 1.12 times at quarter-end, effectively unchanged from the first quarter. The company had about $6 billion of available liquidity after repaying $1 billion of unsecured notes in July, Lem said.
During the quarter, the company completed approximately $1.2 billion of additional financing, including $800 million of unsecured notes and about $370 million of incremental commitments across two secured revolving credit facilities. It also launched what management described as the BDC sector’s first commercial paper program, with up to $1 billion of capacity.
Lem said commercial paper could lower funding costs by roughly 50 to 100 basis points compared with the company’s average secured borrowings at current market levels. The company made its first issuance under the program after the quarter ended and expects to use a few hundred million dollars of capacity initially.
The company declared a regular third-quarter dividend of $0.48 per share, payable Sept. 30 to shareholders of record Sept. 15. Ares Capital has paid stable or increasing regular quarterly dividends for 68 consecutive quarters, according to Lem. The company estimated taxable income spillover available for future distributions at approximately $988 million, or $1.38 per share.
About Ares Capital (NASDAQ:ARCC)Ares Capital Corporation NASDAQ: ARCC is a publicly traded business development company (BDC) that specializes in providing debt and equity financing solutions to U.S. middle-market companies. As a BDC, Ares Capital offers investors access to a diversified portfolio of tailored credit investments, including senior secured loans, unitranche financing, mezzanine debt and equity co-investments. The firm's flexible capital structures are designed to support companies seeking growth capital, refinancing or strategic acquisitions.
Through its credit platform, Ares Capital focuses on originations, underwriting and portfolio management across a range of industries, with a particular emphasis on sectors such as healthcare, technology, industrials and business services.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Ares Capital má zítra před otevřením trhu oznámit výsledky za druhé čtvrtletí; tržby mají dosáhnout 769 milionů USD, což znamená růst o 3,2 % meziročně.
Key Takeaways ARCC is expected to report Q2 sales of $769 million, suggesting 3.2% y/y growth.Ares Capital's portfolio growth and deployment likely supported investment income.Higher y/y operating costs may pressure ARCC's quarterly results. Ares Capital Corporation (ARCC - Free Report) is scheduled to announce second-quarter 2026 results tomorrow, before market open. The company’s total investment income is expected to have remained resilient in the quarter, supported by continued growth in the investment portfolio and steady deployment activity, although the quarter is likely to reflect modest pressure from lower benchmark interest rates.
The Zacks Consensus Estimate for ARCC’s second-quarter sales is pegged at $769 million, which indicates year-over-year growth of 3.2%.
In the past seven days, the consensus estimate for earnings for the to-be-reported quarter has been unchanged at 47 cents. The estimate indicates a 6% decline from the prior-year quarter.
Estimate Revision Trend
Image Source: Zacks Investment Research
ARCC does not have a decent or impressive earnings surprise history. The company’s earnings lagged the Zacks Consensus Estimate in two and matched in two of the trailing four quarters.
Earnings Surprise History
Image Source: Zacks Investment Research
Key Q2 Estimates for Ares CapitalThe Zacks Consensus Estimate for ARCC’s interest income from investments (constituting a significant portion of total investment income) is pegged at $515 million, indicating a 3.4% decline from the prior-year quarter.
The consensus mark for other income is pegged at $19.40 million, implying a 3% decline. The Zacks Consensus Estimate for dividend income of $157 million suggests a marginal decline from the prior-year quarter.
However, the consensus estimate for capital structuring service fees is pegged at $36.23 million, implying a 6.6% year-over-year rise.
Ares Capital has been witnessing higher expenses over the past several quarters. As the company has been investing in venture growth stage companies, operating costs are expected to have been elevated in the second quarter.
What Our Quantitative Model Unveils for ARCCAccording to our quantitative model, the chances of Ares Capital beating the Zacks Consensus Estimate for earnings this time are low. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Ares Capital is -3.85%.
Zacks Rank: ARCC currently carries a Zacks Rank #3.
Finance Stocks Worth a LookHere are a couple of finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:
The Earnings ESP for Prosperity Bancshares (PB - Free Report) is +1.76% and it currently carries a Zacks Rank #3. The company is slated to report quarterly results tomorrow. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past seven days, the Zacks Consensus Estimate for PB’s quarterly earnings has been unchanged at $1.54.
Robinhood Markets (HOOD - Free Report) is also scheduled to report quarterly results tomorrow. The company has an Earnings ESP of +2.98% and a Zacks Rank #3.
Over the past seven days, the Zacks Consensus Estimate for HOOD’s quarterly earnings has been unchanged at 39 cents.
Wall Street expects a year-over-year decline in earnings on higher revenues when Ares Capital (ARCC - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis private equity firm is expected to post quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of -6%.
Revenues are expected to be $768.95 million, up 3.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.52% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Ares Capital?For Ares Capital, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -3.85%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Ares Capital will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Ares Capital would post earnings of $0.48 per share when it actually produced earnings of $0.47, delivering a surprise of -2.08%.
The company has not been able to beat consensus EPS estimates in any of the last four quarters.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Ares Capital doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAres Capital (ARCC - Free Report) , another stock in the Zacks Financial - SBIC & Commercial Industry industry, is expected to report earnings per share of $0.47 for the quarter ended June 2026. This estimate points to a year-over-year change of -6%. Revenues for the quarter are expected to be $768.95 million, up 3.2% from the year-ago quarter.
The consensus EPS estimate for Ares Capital has been revised 0.5% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -3.85%.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Ares Capital will beat the consensus EPS estimate. The company could not beat consensus EPS estimates in any of the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Ares Capital (ARCC) oznámí výsledky za 2. čtvrtletí 2026 ve středu 29. července před otevřením trhu. Analytici čekají EPS 0,47 USD a výnosy 770,6710 milionu USD.
Ares Capital (NASDAQ:ARCC – Get Free Report) is anticipated to announce its Q2 2026 results before the market opens on Wednesday, July 29th. Analysts expect the company to post earnings of $0.47 per share and revenue of $770.6710 million for the quarter. Interested persons may visit the the company’s upcoming Q2 2026 earning report page for the latest details on the call scheduled for Wednesday, July 29, 2026 at 12:00 PM ET.
Ares Capital (NASDAQ:ARCC – Get Free Report) last announced its earnings results on Tuesday, April 28th. The investment management company reported $0.47 EPS for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.01). The firm had revenue of $763.00 million for the quarter, compared to analysts’ expectations of $778.00 million. Ares Capital had a net margin of 37.30% and a return on equity of 9.85%. The business’s revenue was up 4.2% compared to the same quarter last year. During the same quarter last year, the business earned $0.50 earnings per share. On average, analysts expect Ares Capital to post $2 EPS for the current fiscal year and $2 EPS for the next fiscal year.
Ares Capital Stock Down 0.2% Shares of NASDAQ:ARCC opened at $18.95 on Wednesday. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.40 and a quick ratio of 1.40. The firm has a market capitalization of $13.61 billion, a PE ratio of 11.63 and a beta of 0.56. The firm’s 50-day moving average is $18.66 and its two-hundred day moving average is $18.99. Ares Capital has a 1 year low of $17.40 and a 1 year high of $23.20.
Ares Capital Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were paid a $0.48 dividend. The ex-dividend date of this dividend was Monday, June 15th. This represents a $1.92 annualized dividend and a dividend yield of 10.1%. Ares Capital’s dividend payout ratio (DPR) is presently 117.79%.
Analyst Upgrades and Downgrades ARCC has been the subject of a number of research reports. JPMorgan Chase & Co. dropped their price objective on shares of Ares Capital from $19.00 to $18.50 and set an “overweight” rating for the company in a report on Thursday, July 2nd. Royal Bank Of Canada reduced their target price on shares of Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a report on Wednesday, April 29th. Citizens Jmp decreased their price target on shares of Ares Capital from $23.00 to $22.00 and set a “market outperform” rating for the company in a research report on Wednesday, April 22nd. Truist Financial dropped their price target on shares of Ares Capital from $23.00 to $22.00 and set a “buy” rating for the company in a research note on Wednesday, April 29th. Finally, Keefe, Bruyette & Woods cut their price objective on Ares Capital from $22.00 to $21.00 and set an “outperform” rating on the stock in a research report on Thursday, April 16th. Eight research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Ares Capital currently has an average rating of “Moderate Buy” and an average target price of $20.60.
Check Out Our Latest Research Report on ARCC
Hedge Funds Weigh In On Ares Capital A number of institutional investors and hedge funds have recently made changes to their positions in the stock. First Citizens Bank & Trust Co. grew its holdings in shares of Ares Capital by 5.3% during the fourth quarter. First Citizens Bank & Trust Co. now owns 10,530 shares of the investment management company’s stock worth $213,000 after purchasing an additional 532 shares during the last quarter. PCG Wealth Advisors LLC increased its position in shares of Ares Capital by 3.4% during the third quarter. PCG Wealth Advisors LLC now owns 19,282 shares of the investment management company’s stock worth $394,000 after purchasing an additional 643 shares in the last quarter. Navis Wealth Advisors LLC lifted its holdings in shares of Ares Capital by 2.3% in the 3rd quarter. Navis Wealth Advisors LLC now owns 28,104 shares of the investment management company’s stock valued at $574,000 after purchasing an additional 643 shares during the last quarter. Empowered Funds LLC lifted its holdings in shares of Ares Capital by 2.1% in the 4th quarter. Empowered Funds LLC now owns 38,803 shares of the investment management company’s stock valued at $785,000 after purchasing an additional 780 shares during the last quarter. Finally, DCM Advisors LLC boosted its position in shares of Ares Capital by 4.0% in the 2nd quarter. DCM Advisors LLC now owns 23,348 shares of the investment management company’s stock valued at $471,000 after purchasing an additional 905 shares during the period. 27.38% of the stock is owned by institutional investors and hedge funds.
Ares Capital Company Profile (Get Free Report)
Ares Capital Corporation (NASDAQ: ARCC) is a publicly traded business development company (BDC) that specializes in providing debt and equity financing solutions to U.S. middle-market companies. As a BDC, Ares Capital offers investors access to a diversified portfolio of tailored credit investments, including senior secured loans, unitranche financing, mezzanine debt and equity co-investments. The firm’s flexible capital structures are designed to support companies seeking growth capital, refinancing or strategic acquisitions.
Through its credit platform, Ares Capital focuses on originations, underwriting and portfolio management across a range of industries, with a particular emphasis on sectors such as healthcare, technology, industrials and business services.
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Ares Capital nyní nabízí výnos přes 10 %, takže investice 5 000 USD by mohla ročně přinést více než 500 USD na dividendách. Firma ale v 1. čtvrtletí vykázala core earnings 0,47 USD na akcii, pod úrovní dividendy 0,48 USD na akcii.
Ares Capital (ARCC +0.63%) currently yields just over 10%. That's about 10 times higher than the S&P 500.
At that rate, investing $5,000 into the business development company's (BDC) stock would generate a little more than $500 a year in passive income. That's, of course, if Ares Capital can maintain its current dividend rate. Here's a look at the sustainability of its high-yielding payout.
Image source: Getty Images.
Getting tighter, but not a concern yet Ares Capital has an excellent dividend track record. The BDC has paid a stable or growing regular dividend for over 16 consecutive years. That's impressive in the BDC space, as many of its peers have had to cut their payouts over the years due to falling earnings.
There's some concern about the sustainability of Ares Capital's dividend, given the recent decline in its core earnings. The BDC reported $0.47 per share of core earnings in the first quarter, down from $0.50 per share in the fourth quarter and year-ago period. As a result, core earnings fell short of the $0.48-per-share quarterly dividend.
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However, that doesn't mean a payout cut is forthcoming. Ares Capital also reported $0.15 per share of realized gains in the first quarter. Add that to core earnings, and its combined income was more than enough to cover the payout. Further, the BDC has built up a sizable cushion of spillover income from excess earnings carried over from last year ($1.38 per share). Additionally, the company highlighted several other factors on its first-quarter call that point to continued dividend stability and growth. It has modest leverage, the interest rate environment is stabilizing, and its portfolio's current credit performance aligns with its historical track record.
Given all these factors, a $5,000 investment in Ares Capital should generate $500 in dividend income over the next year. While it's a higher-risk dividend stock that investors will need to monitor more closely, it has the potential to continue paying at or above its current annual dividend rate for the foreseeable future.
Matt DiLallo has positions in Ares Capital. The Motley Fool has positions in and recommends Ares Capital. The Motley Fool has a disclosure policy.
The VanEck BDC Income ETF (NYSEARCA:BIZD) just delivered a jolt to income investors: its July distribution came in at $0.24 per share, roughly half the $0.48 paid in April. BIZD passes through the dividends of the business development companies it owns, so when the underlying BDCs strain, BIZD’s payout wobbles. With the fund down 14% over the past year and BDCs facing base-rate cuts and spread compression, the question is whether this distribution is a one-off dip or the start of something worse.
How BIZD Actually Pays You BIZD tracks the MVIS US Business Development Companies Index, holding a concentrated basket of publicly traded BDCs that lend to middle-market firms at floating rates over SOFR. When those loans pay interest, the BDCs distribute nearly all of it to shareholders to preserve their tax status, and BIZD passes that income through quarterly. Roughly 90% or more of BDC loan books are floating rate, which is why the Fed’s 75 basis point cut since September 2025, taking the target to 3.75%, hits BIZD’s income at the source.
The Four Holdings That Decide BIZD’s Fate Ares Capital (NASDAQ:ARCC | ARCC Price Prediction), the largest BDC by market cap at $13.48 billion, held its quarterly dividend at $0.48 for the eighth straight quarter. Q1 core EPS of $0.47 fell a penny short, but net investment income of $0.55 per share gives real cushion. Non-accruals ticked up to 2.1% from 1.8%, worth watching, but a $1.8 billion investment backlog and $6 billion in liquidity support the payout.
Blue Owl Capital (NYSE:OBDC) already made the cut official. On May 5, 2026, the board dropped the base dividend from $0.37 to $0.31, a 16% reduction in annualized payout. CEO Craig Packer cited “a more challenging earnings environment driven by lower base rates and tighter spreads.” Adjusted EPS of $0.31 now exactly matches the new dividend, meaning zero buffer. Shares are down 15% over the past year.
Blackstone Secured Lending (NYSE:BXSL) looks like the next domino. NII of $0.77 covered the $0.77 dividend at exactly 100%, down from 104% in Q4. New investments are being originated at 7.7% while assets rolling off yielded 9.1%, which mechanically compresses future income. Non-accruals jumped to 3.1% of fair value from 0.6% a quarter earlier. CEO Brad Marshall’s own words: “non-accruals increased during the quarter from historically low levels.” Another miss, and BXSL follows OBDC.
Main Street Capital (NYSE:MAIN) is the fund’s insurance policy. Distributable NII of $1.00 per share comfortably covers the $0.26 monthly regular plus a $0.30 quarterly supplemental, now paid for 19 consecutive quarters. NAV per share rose to about $33. MAIN’s lower-middle-market focus and equity co-investments generate returns other BDCs can’t match. Retail readers who like this profile may also want our 7 Monthly Dividend Stocks report.
Total Return Reality Check BIZD’s trailing 12-month distributions of $1.52 look generous against a roughly $13 share price, but the fund is down 6% year-to-date on top of last year’s decline. The forward annualized rate has reset to $0.96, so shoppers pricing this off the trailing yield are anchored to a payout that has already stepped down.
The Verdict BIZD’s distribution is at risk of further reduction. OBDC is done cutting for now, but BXSL is running on fumes at 100% coverage with rising non-accruals, and ARCC’s cushion is thinner than a year ago. MAIN is the anchor doing the heavy lifting. For investors who need a predictable check, MAIN offers more coverage than the blended pass-through. BIZD still makes sense for someone who wants diversified BDC exposure and can tolerate a variable payout that reflects whatever the underlying managers can actually earn each quarter.
Contact [email protected] for any questions or corrections.
Ares Capital (ARCC) v poslední seanci vzrostla o 1,11 % na 18,19 USD, i když širší trh klesal. Před zveřejněním výsledků se čeká EPS 0,47 USD a výnosy 776,52 mil. USD.
In the latest close session, Ares Capital (ARCC - Free Report) was up +1.11% at $18.19. This change outpaced the S&P 500's 0.05% loss on the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 0.24%.
Shares of the private equity firm have depreciated by 4.36% over the course of the past month, underperforming the Finance sector's gain of 2.3%, and the S&P 500's loss of 1.42%.
The investment community will be closely monitoring the performance of Ares Capital in its forthcoming earnings report. The company is expected to report EPS of $0.47, down 6% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $776.52 million, indicating a 4.23% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.91 per share and revenue of $3.14 billion, indicating changes of -4.98% and +2.98%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Ares Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Ares Capital presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Ares Capital is currently being traded at a Forward P/E ratio of 9.43. This represents a premium compared to its industry average Forward P/E of 7.92.
The Financial - SBIC & Commercial Industry industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 211, placing it within the bottom 14% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ARCC in the coming trading sessions, be sure to utilize Zacks.com.
