ARES Earnings Prediction
The chart below shows how ARES performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ARES sees a -3.36% change in stock price 10 days leading up to the earnings, and a +3.01% change 10 days following the report. On the earnings day itself, the stock moves by +1.07%. This data can give you a slight idea of what to expect for the next quarter's release.
ARES Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.19B
58.80%
33.57%
Gross Margin
--
--
--
Operating Margin
29.34%
-13.60%
-21.17%
Net Margin
23.59%
-10.30%
-23.95%
EPS
0.55
83.33%
22.22%
No Data Available
ARES Earnings Analysis
Ares Management Corporation Class A Common Stock Corporation (ARES.N) Earnings Conference Call
Positive
Dividend Increase Announcement: 1. Increased Dividend: Ares Management declared a fourth quarter common dividend of $0.93 per share, marking a 21% increase compared to the same quarter last year.
Impressive Yearly Growth: 2. Strong Year-over-Year Growth: The company reported an 18% increase in management fees, a 24% rise in fee-related earnings, and a 28% growth in realized income year-over-year for Q3 2024.
Record Fundraising Achievement: 3. Record Fundraising: Ares raised nearly $21 billion in gross capital during Q3 2024, contributing to a year-to-date total of over $64 billion, positioning the company for its best fundraising year ever.
Record Deployment Activity: 4. Significant Deployment Activity: The firm achieved nearly $30 billion in global deployment during Q3 2024, bringing the year-to-date deployment total to $74.6 billion, setting the stage for a record year in 2024.
Private Credit Success: 5. Strong Performance in Private Credit: Ares raised over $13.5 billion in private credit strategies during Q3 2024, with total commitments exceeding $57 billion over the past 12 months, highlighting robust investor demand.
Negative
Supplemental Fees Decline: 1. Decline in Supplemental Distribution Fees: Supplemental distribution fees decreased from $15 million in Q2 to $13 million in Q3, reflecting a shift in fundraising mix that negatively impacted fee-related earnings (FRE) margins by 107 basis points.
Decline in Performance Income: 2. Lower Net Realized Performance Income: The company generated only $9 million of net realized performance income in Q3, significantly lower than expectations, primarily due to a lack of material sales from funds with American-style waterfalls.
Rising Compensation Costs: 3. Increased Compensation Expenses: Compensation expenses, excluding fee-related performance revenue (FRPR) compensation, rose by 13% year-over-year, driven by higher headcount and increased Part 1 fees, which could pressure future margins.
Fee-Related Earnings Margin Pressure: 4. Pressure on Fee-Related Earnings Margin: The FRE margin for Q3 was 41.1%, unchanged from the previous year, but is expected to decline to approximately 40% in Q4 due to the impact of supplemental distribution fees and higher compensation costs.
Secondaries Market Underperformance: 5. Weak Performance in Secondaries Market: The secondaries market reported negative returns for the quarter and over the last 12 months, indicating underperformance in this segment despite strong demand for Ares' secondary products.
ARES FAQs
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ARES Earning Call Sentiment
Ares Management Corporation (ARES) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ARES.N
-3.72%Positive
The earnings call summary highlights strong financial performance with increased management fees, AUM growth, and a substantial dividend increase, suggesting positive investor sentiment. The Q&A section reveals some concerns about market volatility and operational risks but also emphasizes strategic strengths and growth potential. While there are risks in market exposure and performance fees, the company's robust fundraising and deployment indicate a positive outlook. The dividend increase further supports a positive sentiment, likely leading to a stock price increase in the short term.