Ares Management Corp (ARES, Financial) released its 8-K filing on August 2, 2024, detailing its financial performance for the second quarter ended June 30, 2024. The asset management company, which offers investment-related advice and strategies for capital growth, operates through segments including Credit Group, Private Equity Group, Real Assets, and Secondaries Group.
Performance Overview
For the second quarter of 2024, Ares Management Corp (ARES, Financial) reported GAAP net income attributable to the company of $94.9 million, translating to $0.43 per share of Class A and non-voting common stock. This figure falls short of the analyst estimate of $0.46 per share. The company's revenue for the quarter was not explicitly stated in the filing, but it is implied to be below the estimated $810.52 million.
Key Financial Metrics
Despite the earnings miss, Ares Management Corp (ARES, Financial) achieved several notable financial milestones:
- After-tax realized income was $332.0 million, or $0.99 per share of Class A common stock.
- Fee-related earnings amounted to $324.5 million.
- The company raised $26 billion in capital during the quarter, marking its highest level of gross fundraising.
“We generated impressive results in the second quarter, including our highest level of gross fundraising and our second highest level of deployment in our firm’s history,” said Michael Arougheti, Chief Executive Officer and President of Ares.
Dividend and Capital Management
Ares Management Corp (ARES, Financial) declared a quarterly dividend of $0.93 per share of its Class A and non-voting common stock, payable on September 30, 2024, to shareholders of record as of September 16, 2024. The company also announced a Dividend Reinvestment Program for its Class A common stockholders, effective for the quarterly dividend on September 30, 2024.
Financial Statements and Metrics
Key details from the financial statements include:
| Metric | Q2 2024 |
|---|---|
| GAAP Net Income | $94.9 million |
| Net Income per Share | $0.43 |
| After-tax Realized Income | $332.0 million |
| Fee-related Earnings | $324.5 million |
Analysis and Outlook
The performance of Ares Management Corp (ARES, Financial) in Q2 2024 highlights both achievements and challenges. The company's ability to raise significant capital and generate fee-related earnings underscores its strong market position and investor confidence. However, the earnings miss relative to analyst estimates indicates potential headwinds that may need to be addressed.
“In the second quarter, we experienced continued strength in the fundamental performance of our portfolios and double-digit growth across many of our key financial metrics as our investment activity accelerated,” said Jarrod Phillips, Chief Financial Officer of Ares.
With a record amount of available capital exceeding $120 billion, Ares Management Corp (ARES, Financial) is well-positioned to capitalize on improving market conditions and drive future earnings growth. Investors and stakeholders will be keenly watching how the company navigates the evolving financial landscape in the coming quarters.
Explore the complete 8-K earnings release (here) from Ares Management Corp for further details.
