Ares Capital Shares Lag Sector, EPS Estimate Cut 0.8% to $0.49
Ares Capital shares have dropped 2.8% over the past month, lagging the S&P 500 composite's 1.3% decline and the 7.8% loss in its SBIC & Commercial Finance industry. Q1 EPS estimates fell 0.8% to $0.49 alongside a 6.3% sales forecast increase to $777.8M, while valuation holds a D grade.
1. Share Performance
Over the past month, Ares Capital shares declined 2.8%, underperforming the 1.3% drop in the S&P 500 composite and the 7.8% decrease in its SBIC & Commercial Finance peer group.
2. Earnings Estimate Revisions
Consensus EPS for the current quarter is $0.49 per share, a 0.8% downward revision over 30 days and 2% below last year’s quarter. Fiscal-year EPS estimates stand at $1.94 (down 3.5% y/y) and $1.92 for next year (down 1%), with minimal change over the past month.
3. Revenue Forecasts
The current-quarter sales consensus of $777.8 million reflects a 6.3% year-over-year increase. Full-year revenues are projected at $3.17 billion (+3.8%), rising to $3.26 billion (+2.8%) next fiscal year. In the last reported quarter, Ares Capital generated $793 million in revenue (+4.5%) and $0.50 EPS, matching consensus EPS and posting a 0.4% revenue shortfall.
4. Valuation Grade
Ares Capital holds a D grade on its value style score, indicating valuation multiples such as P/E and P/S trade at a premium compared with peer averages.