Asset manager Apollo Global Management (APO +0.70%) is up 7% in the last week due to quarterly results it reported Tuesday that exceeded Wall Street's estimates.
NYSE: APO
Key Data Points
Fee-related earnings -- an important measure of an asset management firm's core profitability -- soared 23% in the quarter, to $652 million. That was about 4% higher than Wall Street's forecast of $626.5 million.
And adjusted net income of $1.35 billion, or $2.17 a share, was 14% higher than the $1.90 consensus estimate.
In addition, capital inflows of $82 billion in the quarter and $219 billion over the last 12 months (a 24% year-over-year increase) boosted the firm's total assets under management -- a critical metric for asset managers -- to $908 billion, closing in on the trillion-dollar level. Part of that -- about $21 billion -- came from the company's third-quarter acquisition of Bridge Investment Group.
Source: Getty Images.
Strong insurance results
Apollo's Athene insurance unit performed particularly well in the quarter. Its $871 million in spread-related earnings -- basically earnings on investments minus payments it must make to policyholders -- was the highest level in two years. Apollo merged with Athene in 2021, and the insurance premiums it generates have allowed Apollo to make significant new loans, about $75 billion in new loans during the quarter.
While the stock is down about 19% this year, the strong quarterly results suggest Apollo is making positive strides.
