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Apollo Global Q3 Earnings Surpass Estimates, AUM Balance Up

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Shares of Apollo Global Management, LLC (APO - Free Report) gained 7% following the better-than-expected third-quarter 2024 result. The company reported adjusted net income (ANI) per share of $1.81, beating the Zacks Consensus Estimate by 4%. Also, the reported figure compared favorably with ANI of $1.71 per share reported in the year-ago period.

Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.

Results were primarily aided by strong performance across all segments. Higher assets under management (AUM) balances supported results. However, rising expenses acted as a headwind during the quarter.

GAAP net income attributable to Apollo Global was $787 million or $1.30 per share compared with the net income of $828 million or $1.36 per share in the prior-year quarter.


APO’s Revenues & Expenses Increases

Total revenues were $926 million, increasing 11% year over year. Also, it topped the Zacks Consensus Estimate of $891.7 million. 

Total expenses for combined segments increased 4.7% year over year to $157 million in the reported quarter.


APO’s AUM Balances Up

Fee-earnings AUM increased 18% on a year-over-year basis to $551 billion. 

As of Sept. 30, 2024, total AUM was $733 billion, up 16% on a year-over-year basis.  Total AUM benefited from inflows of $42 billion in the third quarter.


APO’s Capital and Liquidity Position Weak

As of Sept. 30, 2024, Apollo Global had $2.7 billion of cash and cash equivalents and $4.1 billion of debt.


Apollo’s Distribution Update

Apollo Global declared a quarterly cash distribution of 46 cents per share along with the earnings release. This distribution will be paid on Nov. 29, 2024, to shareholders of record at the close of business on Nov. 18.


Our Viewpoint on Apollo

A significant increase in revenues and AUM looks encouraging. The company’s third-quarter results reflect broad-based momentum across the platform. The company registered record quarterly origination volume driven by a diverse array of investing activity across debt origination platforms, core credit, high-grade capital solutions, and equity origination. 

Apollo Global Management Inc. Price, Consensus and EPS Surprise

Currently, 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 Other Asset Managers

Lazard Inc.’s (LAZ - Free Report) third-quarter 2024 adjusted earnings per share of 38 cents missed the Zacks Consensus Estimate of 41 cents. This compared favorably with earnings of 10 cents in the year-ago quarter.

LAZ’s results were negatively impacted due to a rise in expenses and weak performance in the corporate segment. Nonetheless, an increase in revenues in the financial advisory and asset management segment, along with a rise in AUM balances offered support. 

Invesco’s (IVZ - Free Report) third-quarter 2024 adjusted earnings of 44 cents per share came in line with the Zacks Consensus Estimate. The bottom line increased 25.7% from the prior-year quarter.

IVZ’s results were primarily aided by a decline in adjusted expenses and higher adjusted net revenues. An increase in the AUM balance on decent inflows was a positive too.


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