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Compared to Estimates, Ares Management (ARES) Q4 Earnings: A Look at Key Metrics
ARESAres(ARES) ZACKS· ZACKS·2025-02-05 15:36

Core Insights - Ares Management reported a revenue of 1.24billionforthequarterendedDecember2024,reflectingayearoveryearincreaseof30.61.24 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,slightlyupfrom1.23, slightly up from 1.21 in the same quarter last year, but below the consensus estimate of 1.29,resultinginanEPSsurpriseof4.651.29, 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 299.03billionbythreeanalysts[4]TheFPAUMfortheCreditGroupwas299.03 billion by three analysts [4] - The FPAUM for the Credit Group was 209.20 billion, below the average estimate of 213.65billion[4]TheFPAUMforthePrivateEquityGroupwas213.65 billion [4] - The FPAUM for the Private Equity Group was 11.40 billion, compared to the average estimate of 12.87billion[4]TheFPAUMfortheRealAssetsGroupwas12.87 billion [4] - The FPAUM for the Real Assets Group was 44.10 billion, slightly below the average estimate of 44.77billion[4]RevenueBreakdownOtherfeesamountedto44.77 billion [4] Revenue Breakdown - Other fees amounted to 25.35 million, which was in line with the average estimate of 25.42million,showingayearoveryearincreaseof15.525.42 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 179.58million,representingayearoveryeardeclineof6.6179.58 million, representing a year-over-year decline of 6.6% [4] - Management fees totaled 780.69 million, slightly below the average estimate of 786.26million,butreflectingan11786.26 million, but reflecting an 11% year-over-year increase [4] - Performance income-realized was reported at 275.25 million, exceeding the average estimate of 257million[4]RealizedIncomeAnalysisRealizedincomefromtheSecondariesGroupwas257 million [4] Realized Income Analysis - Realized income from the Secondaries Group was 39.48 million, surpassing the average estimate of 26.77million,markingayearoveryearincreaseof16.726.77 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 57.51million,representingayearoveryearincreaseof24.457.51 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 21.60million,indicatingasignificantyearoveryeardeclineof56.621.60 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]