NEW YORK (TheStreet) -- Shares of American Capital (ACAS) were gaining 10.8% to $16.25 after-hours Wednesday after the asset management company announced plans to split into three companies and announced its third quarter results.

American Capital said it will spin off two business development companies: American Capital Growth and Income and American Capital Income.

American Capital will remain primarily in the asset management business. American Capital Growth and Income's assets will mostly come from securities issued by operating companies purchased by American Capital One Stop Buyouts, senior floating rate loans to private companies, and CLO equity investments. American Capital Income's assets will mainly consist of second lien and mezzanine loans to middle market companies.

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In addition to announcing plans to spin off the two companies, American Capital reported earnings of 18 cents a share for the third quarter, beating analysts' estimates of 16 cents a share. The company said revenue grew 21.7% year over year to $129 million, beating analysts' estimates of $119.1 million.

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TheStreet Ratings team rates AMERICAN CAPITAL LTD as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate AMERICAN CAPITAL LTD (ACAS) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and relatively poor performance when compared with the S&P 500 during the past year."

You can view the full analysis from the report here: ACAS Ratings Report

ACAS data by YCharts

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