NASDAQ$ARCC

Ares Capital Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Ares Capital's financial results for Q2 2022 were announced, with a dividend of $0.43 per share declared for Q3 2022.

Ares Capital reported a net income of $111 million for Q2 2022, with core EPS at $0.46 and GAAP net income per share at $0.22. The company declared a third quarter dividend of $0.43 per share.

  • Core EPS was $0.46, reflecting a 10% sequential growth.
  • GAAP net income per share was $0.22.
  • A third quarter dividend of $0.43 per share was declared.
  • New investment commitments totaled $3.1 billion.

Headline financials

Total Revenue

$479M

Previous: $459M+4.4%
EPS (adj)

$0.46

Previous: $0.53-13.2%
Debt/equity ratio

1.3%

Previous: 1.2%+9.5%
Net Income

$111M

Previous: $478M-76.8%
Operating Income

$267M

Previous: $182M+46.7%
Cash & Equivalents

$204M

Previous: $377M-45.9%
Total Assets

$21.8B

Previous: $18B+20.9%

Revenue & EPS history

Ares Capital · Revenue · Quarterly

$479M

Q2 2022+4.4%vs Q2 2021
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Forward guidance

Ares Capital anticipates increased earnings from higher interest rates and a strong investment portfolio, leading to an increased regular quarterly dividend.

Tailwinds

  • Expects increasing earnings from higher interest rates.
  • Maintains a strong investment portfolio.
  • Competitive environment has improved.
  • Sees more attractive terms on new transaction opportunities.
  • Balance sheet remains a notable source of strength with ample liquidity and moderate leverage.

Headwinds

  • Market rate increases during the second quarter have yet to fully flow through earnings.
  • Net income can vary substantially from period to period.
  • Quarterly comparisons of net income may not be meaningful.
  • Ares Capital may seek to sell all or a portion of new investment commitments, although there can be no assurance that Ares Capital will be able to do so.
  • The consummation of any of the investments in backlog and pipeline depends upon satisfactory completion of Ares Capital due diligence investigation.

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 Q2 2022

Historical avgQ2 2022

+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

Earnings price reactions
QuarterReport dateReaction (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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