Ares Capital Corp. (ARCC) saw its stock plummet 5.08% in intraday trading on Wednesday, underperforming the broader market. The specialty finance firm's shares were weighed down by a couple of significant developments:
First, Ares Capital reported weaker-than-expected fourth-quarter results, with core earnings per share of $0.55, missing the consensus estimate of $0.58. The company also reported investment income of $759 million, falling short of analysts' expectations of $785.4 million. While revenue rose year-over-year, the earnings miss and slower growth contributed to the stock's decline.
Additionally, Ares Capital announced that its CEO, Kipp deVeer, will be stepping down from his position, effective April 30. The company named co-president Kort Schnabel as the new Chief Executive Officer. While the leadership transition had been planned, the news of deVeer's departure added to the uncertainty surrounding the company, further weighing on the stock.
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