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Ares Management (ARES) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates
ARESAres(ARES) ZACKS·2025-05-05 14:35

Core Insights - Ares Management reported a revenue of 897.58millionforthequarterendedMarch2025,reflectingayear−over−yearincreaseof21.9897.58 million for the quarter ended March 2025, reflecting a year-over-year increase of 21.9% and an EPS of 1.09, up from 0.80inthesamequarterlastyear[1]−TherevenuefellshortoftheZacksConsensusEstimateof0.80 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 0.94by15.960.94 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 327.60billion[4]−TheCreditGroup′sFPAUMendingbalancewas327.60 billion [4] - The Credit Group's FPAUM ending balance was 218.23 billion, slightly above the estimated 217.62billion[4]−ThePrivateEquityGroup′sFPAUMendingbalancewas217.62 billion [4] - The Private Equity Group's FPAUM ending balance was 11.35 billion, below the estimated 13.08billion[4]−TheRealAssetsGroup′sFPAUMendingbalancewas13.08 billion [4] - The Real Assets Group's FPAUM ending balance was 76.43 billion, exceeding the average estimate of 66.98billion[4]RevenueBreakdown−Otherfeesamountedto66.98 billion [4] Revenue Breakdown - Other fees amounted to 38.17 million, significantly higher than the average estimate of 26.37million,representingayear−over−yearincreaseof9226.37 million, representing a year-over-year increase of 92% [4] - Fee-related performance revenues were reported at 28.05 million, compared to the estimated 12.38million,markingasubstantialincreaseof654.712.38 million, marking a substantial increase of 654.7% year over year [4] - Management fees reached 818.38 million, slightly above the average estimate of 817.56million,reflectingan18817.56 million, reflecting an 18% year-over-year increase [4] - Performance income-realized was 125.45 million, exceeding the estimated 70.69million,withayear−over−yearincreaseof441.270.69 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 36.96million,representingayear−over−yearincreaseof71.636.96 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 70.94million,withayear−over−yearchangeof9370.94 million, with a year-over-year change of 93% [4] - Realized income from the Credit Group was 431.94 million, slightly above the estimated 415.44million,reflectinga21.3415.44 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]