Apollo Global Management Set to Report Earnings: What Investors Should Expect
Apollo Global Management, Inc. (APO), a significant player in alternative asset management, is gearing up to reveal its fourth-quarter results. The firm, headquartered in New York, excels at financing businesses through creative capital strategies that aim to yield superior returns. Currently, Apollo holds a market valuation of $95.8 billion and invests across a wide range of asset classes and regions.
Looking Ahead to Earnings
The asset manager plans to release its fourth-quarter financials prior to market opening on Tuesday, February 4. Analysts forecast a non-GAAP profit of $1.76 per share, a slight increase from $1.75 per share reported in the same quarter last year. It’s important to note that while Apollo has outperformed earnings estimates once in the past year, the company missed estimates in three other quarters.
Full Fiscal Year Insights
For the entire fiscal year 2024, projections indicate an adjusted earnings per share (EPS) of $6.67, which reflects a 9.3% growth from $6.10 reported previously. Looking ahead to fiscal 2025, analysts expect a remarkable 20.4% jump, pushing the EPS to $8.03.
Market Performance
Apollo’s stock has experienced an impressive 69.1% increase over the last year, significantly outpacing the S&P 500 Index, which gained 22.6%, and the Financial Select Sector SPDR Fund, rising 32.3% during the same period.
Recent Growth and Future Expectations
The release of Apollo’s Q3 results on November 5 led to a 7.1% hike in stock prices, with an additional 9.7% rise in the following trading session. The firm continues to demonstrate strong growth, with assets under management (AUM) peaking at $733 billion, thanks to $151 billion in capital inflows over the trailing twelve months, marking a solid 16.2% increase year-over-year. The surge in total revenues to $7.8 billion was also a highlight, exceeding market expectations.
Additionally, Apollo’s fee-related earnings reached a record $531 million, reflecting a 12.5% annual growth, while spread-related earnings achieved the second highest quarter ever at $856 million. Adjusted net income for the quarter rose 8.3% year-over-year, surpassing $1.1 billion.
Analysts’ Ratings and Future Outlook
The consensus surrounding Apollo is notably bullish, with a “Strong Buy” rating prevailing. Of the 21 analysts monitoring the stock, 15 recommend a “Strong Buy,” one calls for a “Moderate Buy,” and five suggest holding. The average price target stands at $183.37, which represents a potential 7.2% upside from current levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For further information, please refer to the Barchart Disclosure Policy here.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
