Ares Management Pref B 2025 Q1 Earnings Revenue Up 53.9% Amid Net Income Drop

Ares Management Pref B (ARESPRB) reported its fiscal 2025 Q1 earnings on May 05th, 2025. The total revenue of Ares Management Pref B increased by 53.9% to $1.09 billion in 2025 Q1, up from $707.36 million in 2024 Q1. However, the company's EPS declined 54.7% to $0.15, and net income fell 39.4% to $123.50 million, signaling challenges in profitability despite revenue growth. Ares Management's guidance remains confident, with expectations for revenue and EPS in the upcoming quarter aligning closely with current figures.

Revenue

The total revenue of Ares Management Pref B increased by 53.9% to $1.09 billion in 2025 Q1, up from $707.36 million in 2024 Q1.

Earnings/Net Income

Ares Management Pref B's EPS declined 54.7% to $0.15 in 2025 Q1 from $0.33 in 2024 Q1. Meanwhile, the company's net income declined to $123.50 million in 2025 Q1, down 39.4% from $203.81 million reported in 2024 Q1. The EPS results were disappointing, reflecting a significant decrease compared to the previous year's figures.

Post-Earnings Price Action Review

The impact of Ares Management Pref B's earnings report on its stock price has historically led to positive returns, with favorable metrics driving short-term price appreciation. The stock's 3-day win rates are notable, with revenue at 57.14%, net income at 61.45%, and EPS at 69.59%. These figures suggest that the company's financial performance can significantly influence market sentiment. Maximum returns have reached up to 11.78% over a 30-day period, highlighting the potential for substantial gains. Despite the recent earnings decline, investors may remain optimistic about the stock's ability to rebound, driven by strong historical performance and strategic initiatives.

CEO Commentary

Ares Management Corporation CEO, Mr. Michael Arougheti, highlighted the company’s strong performance driven by robust demand for alternative asset management solutions. He noted that the firm experienced significant growth across its investment segments, particularly in private equity and real estate, despite facing market volatility. The CEO emphasized strategic priorities such as expanding investment capabilities and enhancing client relationships to capitalize on emerging opportunities. He conveyed an optimistic outlook, asserting that the company is well-positioned to navigate challenges and seize growth potential in the current economic landscape.

Guidance

Ares Management expects to achieve revenue of approximately $1.09 billion for the upcoming quarter, with an EPS target of $0.15. The company anticipates continued growth in assets under management, driven by strategic investments and favorable market conditions. Management remains focused on enhancing operational efficiencies and delivering value to shareholders, affirming confidence in meeting these financial targets amid evolving market dynamics.

Additional News

Ares Management Corporation recently completed the acquisition of GCP International, which closed on March 1, 2025, enhancing its global platform. This strategic move aims to strengthen Ares' capabilities in the Real Assets sector, fostering growth and expansion opportunities. Additionally, Ares declared a quarterly dividend of $1.12 per share for Class A and non-voting common stockholders, reflecting its strong financial position and commitment to returning value to shareholders. These developments underscore Ares' strategic positioning and reinforce its focus on long-term growth and shareholder value, amid a dynamic market environment.