NASDAQ$ARCC

Ares Capital Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Ares Capital reported strong Q4 2023 financial results, with record Core EPS and net asset value per share.

Ares Capital Corporation announced its Q4 2023 financial results, featuring a GAAP net income of $413 million or $0.72 per share and Core EPS of $0.63. The company's portfolio investments at fair value reached $22.874 billion, and it declared a first quarter 2024 dividend of $0.48 per share.

  • Ares Capital reported a GAAP net income of $413 million, or $0.72 per share for Q4 2023.
  • Core EPS for Q4 2023 was $0.63.
  • The company's portfolio investments at fair value totaled $22.874 billion as of December 31, 2023.
  • Ares Capital declared a first quarter 2024 dividend of $0.48 per share.

Headline financials

Total Revenue

$738M

Previous: $640M+15.3%
EPS (adj)

$0.63

Previous: $0.63+0.0%
Debt/equity ratio

1.1%

Previous: 1.3%-17.1%
Floating rate securities at fair value

69.0%

No prior period
Capital Expenditures

$0.00

No prior period
Net Income

$413M

Previous: $174M+137.4%
Operating Income

$354M

Previous: $367M-3.5%

Revenue & EPS history

Ares Capital · Revenue · Quarterly

$738M

Q4 2023+15.3%vs Q4 2022
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Forward guidance

Ares Capital believes it is heading into 2024 from a position of strength and will seek to build upon its 14-year track record of paying a stable regular quarterly dividend for its shareholders. With over $6 billion of available capital after considering the January notes issuance, the company remains well positioned to invest opportunistically in a more active market environment.

Tailwinds

  • Company is in a strong position heading into 2024.
  • Ares Capital aims to build upon its track record of stable quarterly dividends.
  • Over $6 billion of available capital provides flexibility for investments.
  • Company is well positioned to invest opportunistically in a more active market.
  • Raised $1.3 billion of unsecured notes on market leading terms, further strengthening liquidity.

Headwinds

  • Net income can vary substantially from period to period due to various factors.
  • Quarterly comparisons of net income may not be meaningful.
  • Ares Capital may seek to sell new investment commitments, but there is no assurance they will be able to do so.
  • The consummation of any investments in backlog and pipeline depends on satisfactory due diligence and acceptance of terms.
  • Ares Capital cannot assure that it will make any of these investments or sell any portion of these investments.

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 Q4 2023

Historical avgQ4 2023

+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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