Why Ares Capital Stock Withered on Wednesday
There was plenty of news about Ares Capital (NASDAQ: ARCC) on Wednesday, but investors didn't generally consider it to be good. Following the release of the company's latest set of earnings and an announcement regarding a leadership transition, the market largely shunned the stock. It closed 3% lower in price on a day when the S 500 index inched into the black with a 0.4% increase.
Ares, a prominent business development company (BDC), reported its fourth-quarter and full-year 2024 results. Its total investment income -- read "revenue" -- was $759 million, versus the $707 million it reaped in the same period of 2023. What's essentially net income fell during the quarter, however, declining to $357 million ($0.55 per share) from the year-ago tally of $413 million.
Collectively, prognosticators following Ares stock were anticipating the company would earn more than $785 million in revenue and post a bottom-line profit of $0.58 per share.
Source Fool.com
