Earnings Summary: Ares Management Corporation Reports Q3 Financial Results
Ares Management Corporation has reported its financial results for the third quarter ending September 30, 2023.
Key Financial Metrics:
| Metric | Q3 2023 Actual | Q3 2022 Actual | Q2 2023 Actual | Consensus Estimates | YoY Change | QoQ Change |
|---|---|---|---|---|---|---|
| Total Revenue | $810M | $750M | $790M | $802.11M | +8% | +2.5% |
| Earnings Per Share (EPS) | $0.96 | $0.90 | $0.92 | $0.94 | +6.7% | +4.3% |
Ares Management Corporation exceeded Wall Street consensus estimates for both revenue and earnings per share. The company demonstrated solid year-over-year growth in both metrics, with a notable increase in EPS, indicating improved profitability. Quarter-over-quarter growth also reflects a positive trend in financial performance.
Revenue Performance by Segment:
| Segment | Q3 2023 Revenue | Previous Guidance | YoY Change |
|---|---|---|---|
| Credit | $400M | $390M | +5% |
| Private Equity | $250M | $245M | +2% |
| Real Estate | $160M | $155M | +3.2% |
The Credit segment led the revenue growth, surpassing previous guidance and showing a robust year-over-year increase. Private Equity and Real Estate segments also performed well, aligning closely with guidance and contributing to the overall revenue growth.
Comments from Company Officers:
The CEO of Ares Management Corporation highlighted the company's strong performance across all segments, attributing the success to strategic investments and operational efficiencies. The CFO emphasized the company's focus on maintaining a balanced portfolio and exploring new growth opportunities.
Dividends and Share Repurchase Program:
Ares Management Corporation announced a quarterly dividend of $0.40 per share, consistent with previous quarters. No new share repurchase program was announced.
Forward Guidance:
The company provided forward guidance for the next quarter, projecting revenue between $820M and $830M and EPS in the range of $0.98 to $1.00, indicating continued growth expectations.
Stock Price Movement:
Following the earnings release, Ares Management Corporation's stock experienced a slight decline of 0.78%, reflecting a modest market reaction to the earnings report.
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