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Higher Expenses to Hurt Apollo's Q2 Earnings, AUM Growth to Aid
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Key Takeaways
Apollo will report Q2 2025 earnings on Aug. 5, with both earnings and revenues likely to rise year over year.
AUM is expected to reach $812.1B, up 3.5% sequentially, boosting management and performance fees.
Elevated expenses from team expansion and merger charges may weigh on Apollo's quarterly results.
Apollo Global Management, Inc. (APO - Free Report) is scheduled to announce second-quarter 2025 results on Aug. 5, before market open. APO’s quarterly earnings and revenues are expected to have increased from the year-ago reported levels.
In the last reported quarter, Apollo’s earnings lagged the Zacks Consensus Estimate. Results were primarily affected by a rise in expenses. Nonetheless, an increased assets under management (AUM) balance acted as a tailwind in the quarter.
APO’s earnings beat the consensus estimate in two of the trailing four quarters and missed twice, the average earnings surprise being 3.53%.
Apollo Global Management Inc. Price and EPS Surprise
The Zacks Consensus Estimate for APO’s earnings of $1.85 has been unchanged over the past seven days. The figure indicates a rise of 12.8% from the year-ago quarter’s actual.
The consensus estimate for sales is pegged at $1.01 billion, suggesting a year-over-year rise of 8.4%.
Key Factors & Estimates for APO in Q2
Supported by overall asset inflows on the back of volatile markets, the company’s total AUM balance is expected to have improved. Also, its diversified asset classes, client bases and geographies are likely to have supported AUM growth in the quarter to be reported.
The Zacks Consensus Estimate for the company’s total AUM in the second quarter of 2025 is pegged at $812.1 billion, which suggests a sequential rise of 3.5%.
The consensus estimate for management fees (segment earnings) is pegged at $794.2 million, indicating a sequential rise of 3.1%.
In the second quarter of 2025, the consensus estimate for fee-related performance fees (segment earnings) is pegged at $55.6 million, indicating a rise of 3% from the previous quarter’s reported number.
The consensus estimate for net capital solutions fees and other (segment earnings) is pinned at $162.3 million, indicating a sequential decline of 5.4%.
On the cost front, the company’s ongoing investments in building its capital formation and credit investing teams, along with charges related to mergers, are likely to have kept the expense base elevated in the second quarter.
What Our Model Predicts for APO
Per our proven model, the chances of Apollo beating estimates this time are low. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Apollo has an Earnings ESP of -0.36%.
Zacks Rank: APO currently has a Zacks Rank of 4 (Sell).
Invesco’s (IVZ - Free Report) second-quarter 2025 adjusted earnings of 36 cents per share lagged the Zacks Consensus Estimate of 40 cents. Moreover, the bottom line declined 16.3% from the prior-year quarter.
IVZ’s results were adversely impacted by higher adjusted operating expenses. However, a rise in adjusted net revenues was a tailwind. An increase in the AUM balance due to solid inflows was a positive too.
Blackstone’s (BX - Free Report) second-quarter 2025 distributable earnings of $1.21 per share surpassed the Zacks Consensus Estimate of $1.10. The figure reflects a rise of 26% from the prior-year quarter.
Results benefited from higher segment revenues and a rise in AUM balance. However, an increase in GAAP expenses was a headwind for BX.
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Higher Expenses to Hurt Apollo's Q2 Earnings, AUM Growth to Aid
Key Takeaways
Apollo Global Management, Inc. (APO - Free Report) is scheduled to announce second-quarter 2025 results on Aug. 5, before market open. APO’s quarterly earnings and revenues are expected to have increased from the year-ago reported levels.
In the last reported quarter, Apollo’s earnings lagged the Zacks Consensus Estimate. Results were primarily affected by a rise in expenses. Nonetheless, an increased assets under management (AUM) balance acted as a tailwind in the quarter.
APO’s earnings beat the consensus estimate in two of the trailing four quarters and missed twice, the average earnings surprise being 3.53%.
Apollo Global Management Inc. Price and EPS Surprise
Apollo Global Management Inc. price-eps-surprise | Apollo Global Management Inc. Quote
The Zacks Consensus Estimate for APO’s earnings of $1.85 has been unchanged over the past seven days. The figure indicates a rise of 12.8% from the year-ago quarter’s actual.
The consensus estimate for sales is pegged at $1.01 billion, suggesting a year-over-year rise of 8.4%.
Key Factors & Estimates for APO in Q2
Supported by overall asset inflows on the back of volatile markets, the company’s total AUM balance is expected to have improved. Also, its diversified asset classes, client bases and geographies are likely to have supported AUM growth in the quarter to be reported.
The Zacks Consensus Estimate for the company’s total AUM in the second quarter of 2025 is pegged at $812.1 billion, which suggests a sequential rise of 3.5%.
The consensus estimate for management fees (segment earnings) is pegged at $794.2 million, indicating a sequential rise of 3.1%.
In the second quarter of 2025, the consensus estimate for fee-related performance fees (segment earnings) is pegged at $55.6 million, indicating a rise of 3% from the previous quarter’s reported number.
The consensus estimate for net capital solutions fees and other (segment earnings) is pinned at $162.3 million, indicating a sequential decline of 5.4%.
On the cost front, the company’s ongoing investments in building its capital formation and credit investing teams, along with charges related to mergers, are likely to have kept the expense base elevated in the second quarter.
What Our Model Predicts for APO
Per our proven model, the chances of Apollo beating estimates this time are low. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Apollo has an Earnings ESP of -0.36%.
Zacks Rank: APO currently has a Zacks Rank of 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Asset Managers
Invesco’s (IVZ - Free Report) second-quarter 2025 adjusted earnings of 36 cents per share lagged the Zacks Consensus Estimate of 40 cents. Moreover, the bottom line declined 16.3% from the prior-year quarter.
IVZ’s results were adversely impacted by higher adjusted operating expenses. However, a rise in adjusted net revenues was a tailwind. An increase in the AUM balance due to solid inflows was a positive too.
Blackstone’s (BX - Free Report) second-quarter 2025 distributable earnings of $1.21 per share surpassed the Zacks Consensus Estimate of $1.10. The figure reflects a rise of 26% from the prior-year quarter.
Results benefited from higher segment revenues and a rise in AUM balance. However, an increase in GAAP expenses was a headwind for BX.