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Ares Management (ARES) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended June 2023, Ares Management (ARES - Free Report) reported revenue of $792.1 million, up 28.1% over the same period last year. EPS came in at $0.90, compared to $0.74 in the year-ago quarter.
The reported revenue represents a surprise of +9.13% over the Zacks Consensus Estimate of $725.82 million. With the consensus EPS estimate being $0.84, the EPS surprise was +7.14%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Ares Management performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
FPAUM Rollforward - Ending Balance - Total: $242.40 billion versus $230.77 billion estimated by four analysts on average.
FPAUM Rollforward - Ending Balance - Credit Group: $161.70 billion compared to the $161.32 billion average estimate based on four analysts.
FPAUM Rollforward - Ending Balance - Private Equity Group: $19 billion versus $18.88 billion estimated by four analysts on average.
FPAUM Rollforward - Ending Balance - Real Assets Group: $41.10 billion versus the four-analyst average estimate of $41.90 billion.
Financial Details Segments- Management fees: $621.75 million compared to the $628.23 million average estimate based on five analysts.
Segment revenue- Total performance income-realized: $140.64 million compared to the $74.06 million average estimate based on four analysts. The reported number represents a change of +100.6% year over year.
Financial Details Segments- Fee related performance revenues: $0.85 million versus the four-analyst average estimate of $1.63 million.
Realized Income- Credit Group: $324.62 million versus the three-analyst average estimate of $310.65 million.
Realized Income- Private Equity Group: $42.34 million versus $25.88 million estimated by three analysts on average.
Realized Income- Real Assets Group: $53.73 million versus $55.55 million estimated by three analysts on average.
Realized Income- Secondaries Group: $19.83 million versus $25.48 million estimated by three analysts on average.
Realized Income- Other: -$0.99 million versus $1 million estimated by three analysts on average.
Shares of Ares Management have returned +2.8% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Ares Management (ARES) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended June 2023, Ares Management (ARES - Free Report) reported revenue of $792.1 million, up 28.1% over the same period last year. EPS came in at $0.90, compared to $0.74 in the year-ago quarter.
The reported revenue represents a surprise of +9.13% over the Zacks Consensus Estimate of $725.82 million. With the consensus EPS estimate being $0.84, the EPS surprise was +7.14%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Ares Management performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- FPAUM Rollforward - Ending Balance - Total: $242.40 billion versus $230.77 billion estimated by four analysts on average.
- FPAUM Rollforward - Ending Balance - Credit Group: $161.70 billion compared to the $161.32 billion average estimate based on four analysts.
- FPAUM Rollforward - Ending Balance - Private Equity Group: $19 billion versus $18.88 billion estimated by four analysts on average.
- FPAUM Rollforward - Ending Balance - Real Assets Group: $41.10 billion versus the four-analyst average estimate of $41.90 billion.
- Financial Details Segments- Management fees: $621.75 million compared to the $628.23 million average estimate based on five analysts.
- Segment revenue- Total performance income-realized: $140.64 million compared to the $74.06 million average estimate based on four analysts. The reported number represents a change of +100.6% year over year.
- Financial Details Segments- Fee related performance revenues: $0.85 million versus the four-analyst average estimate of $1.63 million.
- Realized Income- Credit Group: $324.62 million versus the three-analyst average estimate of $310.65 million.
- Realized Income- Private Equity Group: $42.34 million versus $25.88 million estimated by three analysts on average.
- Realized Income- Real Assets Group: $53.73 million versus $55.55 million estimated by three analysts on average.
- Realized Income- Secondaries Group: $19.83 million versus $25.48 million estimated by three analysts on average.
- Realized Income- Other: -$0.99 million versus $1 million estimated by three analysts on average.
View all Key Company Metrics for Ares Management here>>>Shares of Ares Management have returned +2.8% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.