Apollo Global Q1 Earnings Miss Estimates, Expenses Increase Y/Y

Apollo Global Management, LLC APO has reported first-quarter 2025 adjusted net income per share of $1.82, which missed the Zacks Consensus Estimate of $1.85. However, the reported figure compared favorably with the adjusted net income of $1.72 in the year-ago period.Results were primarily affected by a rise in expenses. Nonetheless, an increased assets under management (AUM) balance acted as a tailwind in the quarter.GAAP net income attributable to Apollo Global was $418 million, which declined from $1.4 billion in the prior-year quarter.APO’s Quarterly Revenues & Expenses RiseTotal revenues were $978 million, up 16.6% year over year. Also, it topped the Zacks Consensus Estimate by 1.7%. Total expenses for combined segments rose 1.9% year over year to $160 million in the reported quarter.Apollo Global’s AUM Balance RisesFee-earnings AUM increased 17.6% on a year-over-year basis to $595 billion. The rise was driven by strong growth in fee-related revenues and measured expense growth. As of March 31, 2025, total AUM was $785 billion, up 16.9% on a year-over-year basis. Total AUM benefited from $80 billion of inflows from Asset Management and $77 billion of gross inflows from Retirement Services, partially offset by $57 billion of outflows, driven by normal course activity at Athene and $19 billion of realization activity.APO’s Capital & Liquidity Position WeakAs of March 31, 2025, Apollo Global had $1.9 billion of cash and cash equivalents and $4.3 billion of debt.Apollo Global’s Capital Distribution UpdateThe company declared a quarterly cash distribution of 51 cents per share, along with the earnings release. This dividend will be paid out on May 30, 2025, to shareholders of record as of May 16.Our Viewpoint on APOApollo Global’s decent organic growth and increasing AUM balance look encouraging. The company’s first-quarter results reflect broad-based momentum across the platform. Its quarterly origination volume was robust, driven by a diverse array of investing activity across debt origination platforms, core credit, high-grade capital solutions, and equity origination. In February, APO announced a deal to acquire Bridge Investment Group, which is expected to close in the third quarter of 2025. This impending acquisition aligns with the company's objective to expand its real estate expertise and strengthen its wealth business, supporting its financials.Apollo Global Management Inc. Price, Consensus and EPS Surprise  Apollo Global Management Inc. price-consensus-eps-surprise-chart | Apollo Global Management Inc. QuoteCurrently, Apollo Global carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of APO’s PeersInvesco’s IVZ first-quarter 2025 adjusted earnings of 44 cents per share surpassed the Zacks Consensus Estimate of 39 cents. Moreover, the bottom line jumped 33.3% from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)IVZ’s results primarily gained from higher adjusted net revenues. An increase in the AUM balance due to decent inflows was positive, too. However, higher adjusted operating expenses were worrisome.KKR & Co. Inc.’s KKR first-quarter 2025 adjusted net income per share of $1.15 surpassed the Zacks Consensus Estimate of $1.13. The bottom line increased from 97 cents in the prior-year quarter.KKR’s results primarily reflected impressive growth in assets under management and record transaction fees for the capital markets business. However, an increase in expenses acted as a headwind.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco Ltd. (IVZ): Free Stock Analysis Report KKR & Co. Inc. (KKR): Free Stock Analysis Report Apollo Global Management Inc. (APO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks