Published on 2 May 2024 on Zacks via Yahoo Finance
Ares Capital (ARCC) Up on Q1 Earnings Meet, Y/Y Revenue Rise
Shares of Ares Capital Corporation ARCC gained 1.2% following the release of its first-quarter 2024 results. Core earnings of 59 cents per share met the Zacks Consensus Estimate. The bottom line reflects a rise of 3.5% from the prior-year quarter.Results were primarily aided by an improvement in the total investment income. Also, the company’s portfolio activity was robust in the quarter. However, an increase in expenses hurt the results to an extent.GAAP net income was $449 million or 76 cents per share, up from $278 million or 52 cents per share in the prior-year quarter. We projected net income of $375.3 million.
Total Investment Income Improves, Expenses Rise
Total investment income was $701 million, up 13.4% year over year. The rise was driven by an increase in interest income from investments, capital structuring service fees and dividend income. The top line marginally lagged the Zacks Consensus Estimate of $701.4 million.Total quarterly expenses were $369 million, up 23.8% year over year. Our estimate for the metric was $357.3 million.