Business development company Ares Capital (NASDAQ: ARCC) will be reporting results this Tuesday before market open. Here’s what to expect.
Ares Capital missed analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $745 million, down 1.3% year on year. It was a slower quarter for the company, with a slight miss of analysts’ revenue estimates.
Is Ares Capital a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Ares Capital’s revenue to decline 1% year on year to $767.1 million, a reversal from the 18.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Ares Capital has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Ares Capital’s peers in the financial services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. PROG’s revenues decreased 1.8% year on year, beating analysts’ expectations by 1.5%, and Euronet Worldwide reported revenues up 4.2%, falling short of estimates by 4.5%. PROG traded down 5% following the results while Euronet Worldwide was also down 5.9%.
Read our full analysis of PROG’s results here and Euronet Worldwide’s results here.
Investors in the financial services segment have had fairly steady hands going into earnings, with share prices down 1% on average over the last month. Ares Capital is down 1.7% during the same time.
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