ARCC - Ares Capital Corporation

Discussion in 'Stock Message Boards NYSE, NASDAQ, AMEX' started by Marvan, Mar 23, 2019.

  1. Marvan

    Marvan Well-Known Member

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    Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.
     
  2. Marvan

    Marvan Well-Known Member

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  3. Marvan

    Marvan Well-Known Member

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  4. Marvan

    Marvan Well-Known Member

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  5. Marvan

    Marvan Well-Known Member

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    If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Ares Capital (ARCC). This company, which is in the Zacks Financial - SBIC & Commercial Industry industry, shows potential for another earnings beat.

    This private equity firm has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 11.13%.

    For the most recent quarter, Ares Capital was expected to post earnings of $0.41 per share, but it reported $0.45 per share instead, representing a surprise of 9.76%. For the previous quarter, the consensus estimate was $0.40 per share, while it actually produced $0.45 per share, a surprise of 12.50%.

    https://finance.yahoo.com/news/ares-capital-arcc-keep-earnings-141002917.html
     
  6. Marvan

    Marvan Well-Known Member

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    Ares Capital Corporation (“Ares Capital”) (ARCC) announced today that it has increased its Revolving Credit Facility (the “Facility”) from approximately $2.1 billion to approximately $3.4 billion and extended the final maturity date by one year, to March 30, 2024.

    The Facility was led by JP Morgan, Bank of America Merrill Lynch, SunTrust Robinson Humphrey, BMO Capital Markets, MUFG Bank, Ltd. and Sumitomo Mitsui Banking Corporation and includes a total of 34 bank participants, nine of which are new lenders to the Facility. Pricing and advance rates under the Facility remain unchanged.

    https://finance.yahoo.com/news/ares-capital-corporation-increases-extends-120000331.html
     
  7. Marvan

    Marvan Well-Known Member

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    Fortistar LLC, in partnership with Ares Capital Corporation (ARCC), announced today that it has acquired two landfill renewable natural gas (RNG) facilities, Greentree Landfill Gas and Imperial Landfill Gas, from EDF Renewables North America.

    Located in Western Pennsylvania, the two facilities have the capacity to produce 1.5 million decatherms of RNG per year—enough to power 1,117 natural gas trucks and displace 12 million GGE of diesel fuel.

    Fueling trucks with Fortistar’s RNG, will reduce 107,485 metric tons of CO2per year—equivalent to planting over 2.7 million trees each year.

    https://finance.yahoo.com/news/fortistar-acquires-two-renewable-natural-123000315.html
     
  8. Marvan

    Marvan Well-Known Member

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    The market expects Ares Capital (ARCC) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2019. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

    This private equity firm is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of +7.7%.

    Revenues are expected to be $336.39 million, up 6.1% from the year-ago quarter.

    https://finance.yahoo.com/news/ares-capital-arcc-earnings-expected-143202680.html
     
    T0rm3nted likes this.
  9. Marvan

    Marvan Well-Known Member

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    • Perception of the company's creditworthiness is neutral but improving
    • Bearish sentiment is low
    • Economic output in this company's sector is expanding

    Bearish sentiment


    Positive" data-reactid="29">Short interest | Positive

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    Short interest is extremely low for ARCC with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting ARCC.


    Money flow


    Neutral" data-reactid="48">ETF/Index ownership | Neutral

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    ETF activity is neutral. Over the last one-month, outflows of investor capital in ETFs holding ARCC totaled $4 million and appear to be deteriorating further.


    Economic sentiment


    Positive" data-reactid="67">PMI by IHS Markit | Positive

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    According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Financials sector is rising. The rate of growth is strong relative to the trend shown over the past year.

    Credit worthiness


    Neutral" data-reactid="90">Credit default swap | Neutral

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    The current level displays a neutral indicator with a strengthening bias over the past 1-month. ARCC credit default swap spreads are decreasing, indicating some improvement in the market's perception of the company's credit worthiness. Additionally, they are within the middle of the range set over the last three years.

    https://finance.yahoo.com/news/see-ihs-markit-score-report-143703168.html
     
  10. Marvan

    Marvan Well-Known Member

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    Ares Capital Corporation (“Ares Capital”) (NASDAQ:ARCC) announced that its Board of Directors has declared a second quarter dividend of $0.40 per share.

    The second quarter dividend is payable on June 28, 2019 to stockholders of record as of June 14, 2019.

    Ares Capital previously declared on February 12, 2019 an additional dividend of $0.02 per share, payable, subject to the satisfaction of certain Maryland law requirements, on June 28, 2019 to stockholders of record as of June 14, 2019.

    FIRST QUARTER 2019 OPERATING RESULTS

    For the first quarter of 2019, Ares Capital reported GAAP net income of $214 million or $0.50 per share (basic and diluted), Core EPS(2) of $0.48 per share (basic and diluted), net investment income of $201 million or $0.47 per share (basic and diluted), and net realized and unrealized gains of $13 million or $0.03 per share (basic and diluted).

    Net income can vary substantially from period to period due to various factors, including the level of new investment commitments, the recognition of realized gains and losses and unrealized appreciation and depreciation.
    As a result, quarterly comparisons of net income may not be meaningful.

    As of March 31, 2019, total assets were $14.0 billion, stockholders’ equity was $7.3 billion and net asset value per share was $17.21.

    In the first quarter of 2019, Ares Capital made $2.0 billion in new investment commitments, including commitments to 13 new portfolio companies and 24 existing portfolio companies.

    Of the new commitments, 36 were sponsored transactions.

    As of March 31, 2019, 167 separate private equity sponsors were represented in Ares Capital’s portfolio.

    Of the $2.0 billion in new commitments made during the first quarter of 2019, 42% were in first lien senior secured loans, 39% were in second lien senior secured loans, 8% were in the subordinated certificates of the Senior Direct Lending Program, LLC (the “SDLP”), 7% were in preferred equity and 4% were in other equity securities.

    Of these commitments, 94% were in floating rate debt securities, of which 91% contained interest rate floors and 9% were in the subordinated certificates of the SDLP to make co-investments with Varagon Capital Partners (“Varagon”) and its clients in floating rate first lien senior secured loans through the SDLP, all of which contained interest rate floors.

    Ares Capital may seek to sell all or a portion of these new investment commitments, although there can be no assurance that Ares Capital will be able to do so.

    http://www.arescapitalcorp-ir.com/file/Index?KeyFile=397722570
     
  11. Marvan

    Marvan Well-Known Member

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    A month has gone by since the last earnings report for Ares Capital (ARCC). Shares have added about 0.1% in that time frame, outperforming the S&P 500.

    Will the recent positive trend continue leading up to its next earnings release, or is Ares Capital due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

    https://finance.yahoo.com/news/ares-capital-arcc-0-1-133101878.html
     
  12. Marvan

    Marvan Well-Known Member

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  13. Marvan

    Marvan Well-Known Member

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    If the stock market implodes--and I'm not predicting it will--because of tariffs, tweets, weak earnings, Brexit or who knows what else, then high-quality bonds and solid dividend-paying investments, such as specialty finance firms Ares Capital (ARCC, $18, yield 9.0%) and Hannon Armstrong Sustainable Infrastructure Capital (HASI, $26, 5.1%), would benefit or at least hold their own.

    https://finance.yahoo.com/news/2019-midyear-outlook-income-investing-031050566.html
     
  14. Marvan

    Marvan Well-Known Member

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    Earnings Growth

    Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

    While the historical EPS growth rate for Ares Capital is 1.7%, investors should actually focus on the projected growth. The company's EPS is expected to grow 10.4% this year, crushing the industry average, which calls for EPS growth of -0.7%.

    Cash Flow Growth

    Cash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.

    Right now, year-over-year cash flow growth for Ares Capital is 20.6%, which is higher than many of its peers. In fact, the rate compares to the industry average of 6.4%.

    While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 9.3% over the past 3-5 years versus the industry average of 8.7%.

    https://finance.yahoo.com/news/3-reasons-growth-investors-love-124512353.html
     
  15. Marvan

    Marvan Well-Known Member

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    Out at 18.70
     

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