Apollo Global Management (APO, Financial) reported a total asset under management (AUM) of $785 billion for the first quarter, reflecting a robust inflow of $43 billion. This contributed to a 17% year-over-year rise, with $157 billion added over the past twelve months. The firm emphasized its ability to adapt to shifting market conditions, achieving record organic inflows and strong origination volume. Across its various strategies, Apollo delivered consistent investment performance.
In its Retirement Services division, Apollo accelerated new business growth while maintaining a conservative investment approach to capitalize on potential opportunities. The company is well-positioned to manage volatility and market dislocation, supported by its broad origination capabilities, significant dry powder, and a disciplined investment philosophy.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 16 analysts, the average target price for Apollo Global Management Inc (APO, Financial) is $156.44 with a high estimate of $193.00 and a low estimate of $124.00. The average target implies an upside of 13.45% from the current price of $137.89. More detailed estimate data can be found on the Apollo Global Management Inc (APO) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Apollo Global Management Inc's (APO, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Apollo Global Management Inc (APO, Financial) in one year is $88.32, suggesting a downside of 35.95% from the current price of $137.89. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Apollo Global Management Inc (APO) Summary page.
APO Key Business Developments
Release Date: February 04, 2025
- Fee-Related Earnings (FRE): $554 million or $0.90 per share for Q4; $2.1 billion for the full year, up 17% year-over-year.
- Spread-Related Earnings (SRE): $841 million or $1.37 per share for Q4; $3.2 billion for the full year.
- Adjusted Net Income (ANI): $1.4 billion or $2.22 per share for Q4; record annual ANI of $4.6 billion.
- Assets Under Management (AUM): Record $751 billion.
- Total Inflows: $150 billion.
- Origination Volume: Over $220 billion.
- Athene Organic Inflows: More than $70 billion for the year.
- Net Spread ex Notables: 137 basis points.
- Net Accrued Performance Fee Balance: $1.7 billion or $2.75 per share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Apollo Global Management Inc (APO, Financial) reported record fee-related earnings of $554 million or $0.90 per share for the fourth quarter.
- The company was added to the S&P 500 in December, reflecting its remarkable growth and institutionalization.
- Apollo achieved a record annual adjusted net income of $4.6 billion, showcasing strong financial performance.
- The firm reported a record AUM of $751 billion, with total inflows of $150 billion and origination volume over $220 billion.
- Apollo's strategy focuses on sustainable growth, aiming to grow fee-related earnings at an average annual rate of 20% over the next five years.
Negative Points
- The company faces internal challenges in executing its five-year plan, as identified by 90% of its partners.
- There is a risk of increased competition in the retirement market, which could impact growth in that segment.
- Apollo's cost of funding for Athene rose by 12 basis points sequentially, indicating potential pressure on spread-related earnings.
- The firm acknowledges regulatory uncertainties, particularly in the insurance and retirement sectors, which could impact future operations.
- Despite strong performance, the company is cautious about not growing disproportionately in any one quarter, which may limit short-term gains.
