Ares(US:ARES) ZACKSยท2025-05-05 14:35Core Insights - Ares Management reported a revenue of $897.58 million for the quarter ended March 2025, reflecting a year-over-year increase of 21.9% and an EPS of $1.09, up from $0.80 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $913.68 million by 1.76%, while the EPS exceeded the consensus estimate of $0.94 by 15.96% [1] Financial Performance Metrics - The total FPAUM (Fee-Generating Assets Under Management) ending balance was $335.07 billion, surpassing the average estimate of $327.60 billion [4] - The Credit Group's FPAUM ending balance was $218.23 billion, slightly above the estimated $217.62 billion [4] - The Private Equity Group's FPAUM ending balance was $11.35 billion, below the estimated $13.08 billion [4] - The Real Assets Group's FPAUM ending balance was $76.43 billion, exceeding the average estimate of $66.98 billion [4] Revenue Breakdown - Other fees amounted to $38.17 million, significantly higher than the average estimate of $26.37 million, representing a year-over-year increase of 92% [4] - Fee-related performance revenues were reported at $28.05 million, compared to the estimated $12.38 million, marking a substantial increase of 654.7% year over year [4] - Management fees reached $818.38 million, slightly above the average estimate of $817.56 million, reflecting an 18% year-over-year increase [4] - Performance income-realized was $125.45 million, exceeding the estimated $70.69 million, with a year-over-year increase of 441.2% [4] Realized Income Analysis - Realized income from the Secondaries Group was $39.67 million, above the average estimate of $36.96 million, representing a year-over-year increase of 71.6% [4] - Realized income from the Real Assets Group was $87.60 million, surpassing the estimated $70.94 million, with a year-over-year change of 93% [4] - Realized income from the Credit Group was $431.94 million, slightly above the estimated $415.44 million, reflecting a 21.3% year-over-year increase [4] - Realized income from Other Businesses was reported at $10.77 million, compared to the average estimate of $9.24 million, but showed a significant year-over-year decline of 286.9% [4] Stock Performance - Ares Management shares have returned +33.1% over the past month, significantly outperforming the Zacks S&P 500 composite's +0.4% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]