Ares Management Q4 adjusted EPS misses estimates, increases dividend

Overview

• Alternative investment manager's Q4 adjusted EPS missed analyst expectations

• Net income for Q4 was $54.2 mln

• Company announced 20% increase in quarterly dividend

Outlook

• Company expects strong fundraising in 2026, potentially matching or exceeding 2025 levels

• Ares Management sees enhanced global fundraising capabilities with over $150 bln available capital

• Company announces 20% increase in quarterly dividend, reflecting confidence in future earnings

Result Drivers

• FUNDRAISING AND INVESTING - Strong fundraising and investing activities supported a 29% increase in AUM and 25% increase in management fees, per CFO Jarrod Phillips

• ACQUISITION EXPANSION - GCP International acquisition broadened Ares' real estate and digital infrastructure capabilities, per CEO Michael Arougheti

• INVESTOR DEMAND - Robust investor demand across all channels expected to continue, per CEO Michael Arougheti

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy"

• Wall Street's median 12-month price target for Ares Management Corp is $199.00, about 45% above its February 4 closing price of $137.22

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nBw4Cfprya

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