NASDAQ$ARCC
Ares Capital Corp · Q1 2020 earnings
Q1 2020 earnings · · Investor relations
Briefing
Ares Capital reported a net loss and a decrease in net asset value per share due to the impact of the COVID-19 pandemic.
Ares Capital reported a GAAP net loss of $612 million, or $1.42 per share, and core EPS of $0.41 per share. The company's operating results were impacted by the COVID-19 pandemic, which caused severe disruptions in the global economy and negatively impacted the fair value and performance of Ares Capital's investment portfolio. As of March 31, 2020, total assets were $15.8 billion, stockholders’ equity was $6.6 billion, and net asset value per share was $15.58. The company declared a second quarter dividend of $0.40 per share.
- Ares Capital reported a GAAP net loss of $612 million or $1.42 per share.
- Core EPS was $0.41 per share.
- Net investment income was $234 million or $0.54 per share.
- The company declared a second quarter dividend of $0.40 per share.
Headline financials
Revenue & EPS history
Ares Capital · Revenue · Quarterly
$369M
Forward guidance
Ares Capital expects to maintain a stable dividend for the foreseeable future.
Tailwinds
- The company believes it is operating from a position of relative strength.
- The portfolio is defensively positioned and has held up relatively well.
- There is a modest level of non-accruing loans.
- The company has significant liquidity of more than $2.6 billion.
- The company has the ability to support existing borrowers and invest in increasingly attractive market conditions.
Headwinds
- The company's future performance is subject to a number of risks and uncertainties, including the impact of COVID-19.
- Changes in base interest rates and significant market volatility may impact the business.
- The COVID-19 pandemic has caused severe disruptions in the global economy.
- COVID-19 pandemic has negatively impacted the fair value and performance of Ares Capital's investment portfolio.
- There is uncertainty about the duration of business shutdowns and near-term liquidity needs.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2020
+0.2%
Avg return
Earnings day
+0.5%
Avg return
5 days after
+1.3%
Avg return
30 days after
56%
36 / 64 earnings
Positive
+6.5%
Q3 2022
Best reaction
-9.2%
Q2 2011
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +0.8% | +3.4% | +1.0% | |
| Q4 2025 | +0.5% | +1.8% | -2.0% | |
| Q3 2025 | +1.1% | +0.1% | +0.9% | |
| Q1 2025 | -2.7% | -2.1% | +3.5% | |
| Q4 2024 | -3.0% | -3.9% | -3.4% | |
| Q3 2024 | -2.0% | -3.2% | +2.7% | |
| Q2 2024 | +0.2% | -2.9% | +0.6% | |
| Q1 2024 | -0.3% | +1.4% | +4.7% | |
| Q4 2023 | +0.4% | +1.3% | +2.9% | |
| Q3 2023 | +0.5% | -0.8% | +5.5% | |
| Q2 2023 | +1.0% | -0.4% | -2.1% | |
| Q1 2023 | -3.5% | +0.1% | +1.1% | |
| Q4 2022 | +1.8% | +0.7% | -5.9% | |
| Q3 2022 | +6.5% | +7.8% | +8.3% | |
| Q2 2022 | +2.7% | +0.9% | +6.8% | |
| Q1 2022 | -4.1% | -6.6% | -10.6% | |
| Q4 2021 | -2.1% | -4.5% | -10.5% | |
| Q3 2021 | +1.2% | +0.7% | -3.1% | |
| Q2 2021 | -1.3% | -0.5% | +0.0% | |
| Q1 2021 | +0.1% | -2.4% | -0.7% | |
| Q4 2020 | -1.2% | -0.4% | +3.1% | |
| Q3 2020 | -0.8% | -1.3% | +19.9% | |
| Q2 2020 | +2.4% | +3.0% | -1.4% | |
| Q1 2020 | +6.4% | +9.3% | +25.9% | |
| Q4 2019 | -0.2% | -1.0% | -23.7% | |
| Q3 2019 | -1.2% | +0.1% | +1.1% | |
| Q2 2019 | +1.9% | +1.2% | +3.3% | |
| Q1 2019 | +0.2% | +0.4% | +0.4% | |
| Q4 2018 | +2.9% | +3.4% | +3.0% | |
| Q3 2018 | +6.0% | +6.5% | +4.7% | |
| Q2 2018 | +2.3% | +3.1% | +3.6% | |
| Q1 2018 | +1.3% | +2.6% | +5.7% | |
| Q4 2017 | +3.2% | +2.6% | -1.6% | |
| Q3 2017 | -0.3% | +0.9% | +1.0% | |
| Q2 2017 | -0.1% | +0.1% | -1.6% | |
| Q1 2017 | -4.8% | -5.4% | -4.0% | |
| Q4 2016 | +0.5% | +0.5% | -1.9% | |
| Q3 2016 | +0.4% | +0.7% | +6.1% | |
| Q2 2016 | +2.8% | +2.3% | +8.4% | |
| Q1 2016 | +0.1% | — | — | |
| Q4 2015 | +3.6% | — | — | |
| Q3 2015 | +1.2% | — | — | |
| Q2 2015 | -0.3% | — | — | |
| Q1 2015 | -4.2% | — | — | |
| Q4 2014 | +1.6% | — | — | |
| Q3 2014 | +1.4% | — | — | |
| Q2 2014 | -1.4% | — | — | |
| Q1 2014 | -3.5% | — | — | |
| Q4 2013 | -0.9% | — | — | |
| Q3 2013 | +2.4% | — | — | |
| Q2 2013 | -3.9% | — | — | |
| Q1 2013 | -0.1% | — | — | |
| Q4 2012 | +2.0% | — | — | |
| Q3 2012 | -0.5% | — | — | |
| Q2 2012 | +2.1% | — | — | |
| Q1 2012 | -2.4% | — | — | |
| Q4 2011 | +2.3% | — | — | |
| Q3 2011 | -3.1% | — | — | |
| Q2 2011 | -9.2% | — | — | |
| Q1 2011 | -1.3% | — | — | |
| Q4 2010 | -2.0% | — | — | |
| Q3 2010 | +2.0% | — | — | |
| Q2 2010 | +2.4% | — | — | |
| Q1 2010 | +3.0% | — | — |
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