Ares (ARES) Q3 earnings report preview: what to look for
Alternative asset manager Ares Management (NYSE:ARES) will be reporting results this Thursday before the bell. Here’s what you need to know.
Ares met analysts’ revenue expectations last quarter, reporting revenues of $1.28 billion, up 25.6% year on year. It was a satisfactory quarter for the company, with a narrow beat of analysts’ AUM 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 8.5% year on year, slowing from the 35.7% 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 asset management segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Artisan Partners delivered year-on-year revenue growth of 3.7%, beating analysts’ expectations by 1.4%, and Blackstone reported a revenue decline of 2.3%, topping estimates by 1.5%. Blackstone traded up 7.7% following the results.
Read our full analysis of Artisan Partners’s results here and Blackstone’s results here.
Investors in the asset management segment have had steady hands going into earnings, with share prices flat over the last month. Ares is up 3.3% during the same time and is heading into earnings with an average analyst price target of $144.70 (compared to the current share price of $122.24).
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