Apollo Global Management LLC (NYSE:APO) reported its first-quarter earnings this morning, posting a 72 percent increase in profits compared to the same quarter a year ago. The firm’s stock rose as much as 2.78 percent in trading Monday after the results were released.
The company’s total economic income was reported to be $792 million, compared to $462 million in the same quarter a year ago. Economic net income after taxes per share was $1.89 for the first quarter, compared to $1.10 per share in the same quarter a year ago. Wall Street consensus for the first quarter of this year was $1.22 per share
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According to this morning’s release, Apollo Global Management LLC (NYSE:APO) reported $114.3 billion in assets under management as of the end of March. That’s compared to $86.1 billion at the end of March last year.
The firm declared a distribution of 57 cents per Class A share for the first quarter.
BAML Analysts Weigh In On Apollo Global
Analysts at Bank of America Merrill Lynch issued a report after this morning’s earnings release. They point out that fees in the firm’s management business were higher than expected, although they were slightly lower sequentially. Expenses were also lower than they were expected to be, which led to a higher margin.
The company’s incentive business results were not only better than expected, but also improved quarter over quarter. BAML analysts also said the company’s core trends were good.
The Positives From Apollo Global’s Release
Analysts at BAML point out that the firm’s assets under management rose 1 percent quarter over quarter because of “healthy appreciation” and “decent core fundraising activity.” Also the company’s incentive entire net income was strong in the quarter, as was its realizations and also related realized gains, which helped boost the company’s planned 57-cent distribution.
Another big positive they found in the company’s report was its transparency. The firm reported that 76 percent of its portfolio was based on public marks and “appears to bode well for realization activity ahead.”
Concerns From Apollo Global’s First Quarter
Of course there were also some concerns in Apollo Global Management LLC (NYSE:APO)’s latest quarterly report. They note that there was some modest pressure on the company’s fee paying assets under management because of the strong realization activity. In addition, its credit redemptions almost doubled, and it has a weaker outlook with a mixed quarter to date in some of the firm’s key holdings.