Ares (ARES) Reports Q2: Everything You Need To Know Ahead Of Earnings
Alternative asset manager Ares Management (NYSE:ARES) will be announcing earnings results this Friday before the bell. Here’s what to look for.
Ares missed analysts’ revenue expectations last quarter, reporting revenues of $1.27 billion, up 26.2% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates.
Is Ares a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Ares’s revenue to grow 25.3% year on year, improving from the 16.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Ares has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Ares’s peers in the capital markets segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Blackstone delivered year-on-year revenue growth of 23.8%, beating analysts’ expectations by 10.9%, and Artisan Partners reported revenues up 8.9%, topping estimates by 2.3%. Blackstone traded up 5.8% following the results while Artisan Partners was down 1.3%.
Read our full analysis of Blackstone’s results here and Artisan Partners’s results here.
There has been positive sentiment among investors in the capital markets segment, with share prices up 6.5% on average over the last month. Ares is up 11.8% during the same time and is heading into earnings with an average analyst price target of $141.39 (compared to the current share price of $124.48).
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