Ares Management (ARES) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - Ares Management is expected to report a year-over-year increase in earnings and revenues, but actual results compared to estimates will significantly influence its stock price [1][2]. Earnings Expectations - The consensus estimate for Ares Management's quarterly earnings is $0.98 per share, reflecting an 8.9% increase year-over-year [2]. - Revenues are projected to be $868.13 million, which is a 9.6% increase from the same quarter last year [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.01% over the last 30 days, indicating a reassessment by analysts [2]. - Ares Management's Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.81%, suggesting a bearish outlook from analysts [5]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a strong Zacks Rank [4]. - Ares Management currently holds a Zacks Rank of 3, which complicates the prediction of an earnings beat [5][6]. Historical Performance - In the last reported quarter, Ares Management was expected to post earnings of $0.93 per share but only achieved $0.80, resulting in a surprise of -13.98% [7]. - Over the past four quarters, Ares Management has beaten consensus EPS estimates two times [7]. Conclusion - Ares Management does not appear to be a compelling candidate for an earnings beat based on current estimates and revisions, but other factors should also be considered by investors [8].