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

Core Insights - Ares Management reported a revenue of $1.24 billion for the quarter ended December 2024, reflecting a year-over-year increase of 30.6% and a surprise of +1.67% over the Zacks Consensus Estimate of $1.22 billion [1] - The earnings per share (EPS) for the quarter was $1.23, slightly up from $1.21 in the same quarter last year, but below the consensus estimate of $1.29, resulting in an EPS surprise of -4.65% [1] Financial Performance Metrics - The total FPAUM (Fee-Generating Assets Under Management) ending balance was reported at $292.60 billion, which was lower than the average estimate of $299.03 billion by three analysts [4] - The FPAUM for the Credit Group was $209.20 billion, below the average estimate of $213.65 billion [4] - The FPAUM for the Private Equity Group was $11.40 billion, compared to the average estimate of $12.87 billion [4] - The FPAUM for the Real Assets Group was $44.10 billion, slightly below the average estimate of $44.77 billion [4] Revenue Breakdown - Other fees amounted to $25.35 million, which was in line with the average estimate of $25.42 million, showing a year-over-year increase of 15.5% [4] - Fee-related performance revenues were reported at $161.98 million, below the average estimate of $179.58 million, representing a year-over-year decline of 6.6% [4] - Management fees totaled $780.69 million, slightly below the average estimate of $786.26 million, but reflecting an 11% year-over-year increase [4] - Performance income-realized was reported at $275.25 million, exceeding the average estimate of $257 million [4] Realized Income Analysis - Realized income from the Secondaries Group was $39.48 million, surpassing the average estimate of $26.77 million, marking a year-over-year increase of 16.7% [4] - Realized income from the Real Assets Group was $74.21 million, exceeding the average estimate of $57.51 million, representing a year-over-year increase of 24.4% [4] - Realized income from the Private Equity Group was $15.83 million, below the average estimate of $21.60 million, indicating a significant year-over-year decline of 56.6% [4] - Realized income from the Credit Group was $529.14 million, slightly below the average estimate of $541.82 million, but showing a year-over-year increase of 16% [4] Stock Performance - Ares Management shares have returned +9.5% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]