Loading...
•
Jun 30, 2022
Ares Capital Q2 2022 Earnings Report
Ares Capital's financial results for Q2 2022 were announced, with a dividend of $0.43 per share declared for Q3 2022.
Key Takeaways
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.
Ares Capital
Ares Capital
Forward Guidance
Ares Capital anticipates increased earnings from higher interest rates and a strong investment portfolio, leading to an increased regular quarterly dividend.
Positive Outlook
- 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.
Challenges Ahead
- 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.