Core Viewpoint - Apollo Global Management, Inc. (APO) is expected to report an increase in both earnings and revenues for the second quarter of 2025 compared to the previous year, despite elevated expenses impacting results [1][7]. Financial Performance Expectations - The Zacks Consensus Estimate for APO's earnings is $1.85, reflecting a year-over-year increase of 12.8% [2]. - The consensus estimate for sales is $1.01 billion, indicating a year-over-year rise of 8.4% [2]. Assets Under Management (AUM) Insights - Total AUM is projected to reach $812.1 billion, representing a sequential increase of 3.5% [3][7]. - AUM growth is supported by overall asset inflows and the company's diversified asset classes, client bases, and geographies [3]. Fee-Related Earnings Estimates - The consensus estimate for management fees is $794.2 million, indicating a sequential rise of 3.1% [4]. - Fee-related performance fees are estimated at $55.6 million, reflecting a 3% increase from the previous quarter [4]. - Net capital solutions fees and other are estimated at $162.3 million, suggesting a sequential decline of 5.4% [4]. Expense Considerations - Elevated expenses are anticipated due to ongoing investments in capital formation and credit investing teams, as well as merger-related charges [5][7]. Earnings Prediction Model - The likelihood of Apollo beating earnings estimates is low, with an Earnings ESP of -0.36% and a Zacks Rank of 4 (Sell) [6].
Higher Expenses to Hurt Apollo's Q2 Earnings, AUM Growth to Aid