Alternative asset manager Ares Management (NYSE: ARES) will be reporting earnings this Friday before the bell. Here’s what you need to know.
Ares missed analysts’ revenue expectations last quarter, reporting revenues of $1.52 billion, up 23.4% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ revenue estimates and 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 29.2% year on year, slowing from the 40.4% 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 to 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 Q1 results, giving us a hint as to what we can expect. Blackstone delivered year-on-year revenue growth of 24.2%, beating analysts’ expectations by 1.4%, and Artisan Partners reported revenues up 9.3%, in line with consensus estimates. Blackstone traded down 6.2% following the results while Artisan Partners was also down 3.1%.
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 9.1% on average over the last month. Ares is up 2.5% during the same time and is heading into earnings with an average analyst price target of $141.71 (compared to the current share price of $111.84).
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