Ares Management Q3 revenue beats estimates on increased investment activity
Overview
US alternative asset manager's Q3 revenue beat analyst expectations
Adjusted EPS for Q3 missed analyst expectations
Company declared quarterly dividend of $1.35 per share
Outlook
Company expects another record year in fundraising with strong Q4 visibility
Ares expects to meet or exceed key financial objectives for 2026
Company sees continued management fee and earnings growth in 2027 and beyond from embedded capital
Result Drivers
CAPITAL RAISING - Co said strong capital raising across multiple investment groups contributed to Q3 results, per CEO Michael Arougheti
INVESTMENT ACTIVITY - Co said increased investment activity across diversified strategies supported results
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $1.43 bln | $1.27 bln (8 Analysts) |
Q3 Adjusted EPS | Miss | $1.26 | $1.29 (15 Analysts) |
Q3 Net Income | $85.30 mln | ||
Q3 Dividend | $1.35 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the investment management & fund operators peer group is "buy"
Wall Street's median 12-month price target for Ares Management Corporation is $145.00, about 17.1% above its October 28 closing price of $123.82
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago
Reuters Recommended Reads
Oct 27 - Ares Capital seals $2.6 billion deal for Apollo's MFIC as consolidation continues
Oct 27 - Advent raises $30 billion for latest buyout, mid-market funds
Oct 27 - AI financing driving private credit growth as refinancing risks rise, Moody’s says
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)