Compared to Estimates, Ares Management (ARES) Q4 Earnings: A Look at Key Metrics

Zacks
02-05

For the quarter ended December 2024, Ares Management (ARES) reported revenue of $1.24 billion, up 30.6% over the same period last year. EPS came in at $1.23, compared to $1.21 in the year-ago quarter.

The reported revenue represents a surprise of +1.67% over the Zacks Consensus Estimate of $1.22 billion. With the consensus EPS estimate being $1.29, the EPS surprise was -4.65%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Ares Management performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • FPAUM Rollforward - Ending Balance - Total: $292.60 billion versus $299.03 billion estimated by three analysts on average.
  • FPAUM Rollforward - Ending Balance - Credit Group: $209.20 billion compared to the $213.65 billion average estimate based on three analysts.
  • FPAUM Rollforward - Ending Balance - Private Equity Group: $11.40 billion versus the three-analyst average estimate of $12.87 billion.
  • FPAUM Rollforward - Ending Balance - Real Assets Group: $44.10 billion versus the three-analyst average estimate of $44.77 billion.
  • Financial Details Segments- Other fees: $25.35 million versus the four-analyst average estimate of $25.42 million. The reported number represents a year-over-year change of +15.5%.
  • Financial Details Segments- Fee related performance revenues: $161.98 million compared to the $179.58 million average estimate based on four analysts. The reported number represents a change of -6.6% year over year.
  • Financial Details Segments- Management fees: $780.69 million compared to the $786.26 million average estimate based on four analysts. The reported number represents a change of +11% year over year.
  • Financial Details Segments- Performance income-realized: $275.25 million compared to the $257 million average estimate based on four analysts.
  • Realized Income- Secondaries Group: $39.48 million versus $26.77 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +16.7% change.
  • Realized Income- Real Assets Group: $74.21 million compared to the $57.51 million average estimate based on two analysts. The reported number represents a change of +24.4% year over year.
  • Realized Income- Private Equity Group: $15.83 million versus the two-analyst average estimate of $21.60 million. The reported number represents a year-over-year change of -56.6%.
  • Realized Income- Credit Group: $529.14 million versus $541.82 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +16% change.
View all Key Company Metrics for Ares Management here>>>

Shares of Ares Management have returned +9.5% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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