Here's What Key Metrics Tell Us About Ares Management (ARES) Q2 Earnings

Core Insights - Ares Management reported revenue of $786.5 million for the quarter ended June 2024, a decrease of 0.7% year-over-year, with EPS at $0.99 compared to $0.90 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $860.09 million, resulting in a surprise of -8.56%, while the EPS exceeded the consensus estimate of $0.98 by +1.02% [1] Financial Performance Metrics - Total FPAUM (Fee-Generating Assets Under Management) ending balance was $275.85 billion, below the average estimate of $279.90 billion [3] - Credit Group FPAUM ending balance was $197.09 billion, compared to the estimated $199.03 billion [3] - Private Equity Group FPAUM ending balance was $12.27 billion, lower than the estimated $13.74 billion [3] - Real Assets Group FPAUM ending balance was $41.62 billion, slightly below the estimate of $41.68 billion [3] - Other fees amounted to $23.08 million, exceeding the estimate of $22.67 million [3] - Management fees were reported at $726.11 million, slightly below the estimate of $726.59 million [3] - Realized performance income was $109.64 million, compared to the average estimate of $126.16 million [3] Additional Income Metrics - Fee-related performance revenues were $21.57 million, significantly higher than the estimate of $4.19 million [4] - Realized income from the Secondaries Group was $31.68 million, above the estimate of $26.98 million [4] - Realized income from the Real Assets Group was $42.22 million, below the estimate of $52.93 million [5] - Realized income from the Private Equity Group was $10.31 million, compared to the estimate of $20.80 million [6] - Realized income from the Credit Group was $407.90 million, slightly below the estimate of $408.38 million [7] Stock Performance - Ares Management shares have returned +7.8% over the past month, outperforming the Zacks S&P 500 composite, which changed by -0.4% [7] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [7]