NEW YORK - Ares Capital Corporation (NASDAQ: ARCC) announced its financial results for the first quarter ended March 31, 2024, revealing a slight miss on earnings per share (EPS) compared to analyst expectations.
The company reported an adjusted EPS of $0.59, which was $0.01 lower than the analyst estimate of $0.60. Total investment income for the quarter was $701 million, narrowly missing the consensus estimate of $703.85 million.
The first quarter's adjusted EPS of $0.59 is up from the $0.57 reported in the same quarter last year, indicating a YoY growth. The GAAP net income per share also saw a significant increase to $0.76, up from $0.52 YoY. Ares Capital's total investment income showed an increase from the previous year's $618 million, marking a YoY improvement in revenue.
Kipp deVeer, CEO of Ares Capital, commented on the results, "We are off to a strong start to the year, with a healthy level of earnings, low non-accruals, moderate leverage, increased year-over-year investment activity, and record net asset value per share." He attributed the company's performance to its broad market coverage and the scale of its direct origination platform, which he believes positions Ares Capital to continue generating attractive investment returns for shareholders.
The company's Chief Financial Officer, Scott Lem, also highlighted the company's financial position, noting the issuance, amendment, or renewal of over $7 billion of financing at attractive rates. With over $6 billion of available capital and leverage levels below 1.0x, Lem expressed confidence in Ares Capital's ability to support the growth of its portfolio companies and remain opportunistic in the current market environment.
Ares Capital's portfolio investments at fair value were reported at $23.124 billion as of March 31, 2024, compared to $22.874 billion as of December 31, 2023. The company's net assets per share increased to $19.53, up from $19.24 at the end of the previous quarter.
The board of directors declared a second quarter 2024 dividend of $0.48 per share, payable on June 28, 2024, to stockholders of record as of June 14, 2024. This dividend rate remains unchanged from the first quarter 2024 dividend.
Ares Capital is a leading specialty finance company that provides direct loans and other investments in private middle market companies in the United States. The company has elected to be regulated as a business development company and is externally managed by a subsidiary of Ares Management (NYSE:ARES) Corporation.
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