American asset management company.$Apollo Global Management (APO.US)$2024 fiscal year Q3 results will be released before the market opens on November 5th, Eastern Time.

As of the closing on November 4, US Eastern Time,$Apollo Global Management (APO.US)$With a year-to-date increase of over 54%, reaching a market cap of 81.591 billion yuan. The closing price on October 28, US Eastern Time, was $147.04, hitting a historical new high within 52 weeks.

Second-quarter revenue fell short of expectations, leading to a decline in stock price.

apollo global management's total revenue for 2024Q2 was 6.02 billion US dollars, a 56% year-on-year decrease from 13.7 billion US dollars in 2023Q2, lower than the market's expected 3.88 billion US dollars. The main reason for the decline in total revenue in the second quarter is the premiums from apollo's retirement services division, which dropped by nearly 93% from the previous year to 0.673 billion US dollars.

Asset management and trading financing arrangement related income (involving the company's asset management division) increased by nearly 17% to a new high of 0.516 billion US dollars, mainly due to fee related income from what the company referred to as its record-breaking debt issuance activities. Income related to spreads (a performance indicator of its Athene retirement services division) declined by 11% to 0.71 billion US dollars.

GAAP net income attributable to common stockholders was $0.828 billion, with earnings per share of $1.36, higher than the previous year's net income of $0.599 billion (EPS $1). Non-GAAP EPS was $1.64, lower than the market expectation of $1.76.

Looking ahead to the third quarter, the company reported robust equity strategy financing activities and the deployment of raised funds. However, in terms of spread-related income, it is expected to remain flat in the second quarter and then gradually grow back at a more normal pace in the fourth quarter.

Investors saw a significant increase in stock price later on.

October 1, 2024,$Apollo Global Management (APO.US)$ Held an investor day event, mainly introducing the company's business focus and new five-year financial goals. The main objectives for the next five years are as follows:

• Assets under management are expected to increase from $696 billion in the second quarter to around $1.5 trillion.

• Adjusted net income (ANI) is approximately $15.00 per share.

• The annual growth rate of fee-related income is 10%.

• The annual growth rate of spread-related income is 10%.

• Capital growth is around $21 billion.

CEO Marc Rowan said:

"In 2008, the assets under management of all major companies in our industry were $40 billion. By the end of 2023, the assets we managed soared to $650 billion, an increase of 16 to 17 times. The reason we were able to seize the opportunity is because we had positioned the business before the tailwind arrived, resulting in a sevenfold increase in business revenue."

In this industry, the ability to develop high-quality assets is the key to success, and our entire industry is driven by strong forces that will lead to robust growth in the next five years. Given the company's focus on initiating asset development business, extensive crediting franchise, and retirement services leader Athene, Apollo has a unique advantage.

Recent important business developments of the company:

On October 15, $Apollo Global Management (APO.US)$ Launched Apollo S3 Private Market Fund and Private Markets Lux products.

On October 7,$Apollo Global Management (APO.US)$Announced acquisition of technology and aviation aerospace manufacturer for 3.6 billion USD in full cash. $Barnes Group (B.US)$ Both companies announced that Barnes shareholders will receive cash at a price of $47.50 per share, a 22% premium to its closing price on June 25. The transaction is expected to be completed by the end of the first quarter of 2025.

On October 2, $Apollo Global Management (APO.US)$ announced the acquisition of a minority stake in Vonovia for 1 billion euros.

On September 26,$Apollo Global Management (APO.US)$And.$Citigroup (C.US)$Announced the exclusive agreement has been reached, jointly establish a milestone $25 billion private credit direct lending program by a subsidiary of Apollo and a subsidiary of Citigroup, initially launched in North America, and possibly expand to other regions.

On September 20th, $Apollo Global Management (APO.US)$,$BNP PARIBAS SPON (BNPQY.US)$and ATLAS SP Partners announced strategic financing and capital markets cooperation. In the cooperation, BNP Paribas will commit to providing $5 billion of significant financing on the first day, and this amount is expected to increase over time. This commitment aims to support the investment-grade asset-backed credit initiated by Apollo and ATLAS, and to support the securitization projects initiated by the issuers of Apollo and ATLAS through capital markets cooperation.

On September 16th, $Apollo Global Management (APO.US)$ Announced that it will $BP PLC (BP.US)$pay $1 billion to acquire a stake in the TAP natural gas connection division. The transaction is expected to be completed in the fourth quarter of 2024, subject to regulatory and partner approvals.

Current institutional ratings and analysis views

Wall Street analysts currently have an overall bullish attitude towards $Apollo Global Management (APO.US)$with a target price range of $111-162, and an average target price of $137.31.

Morgan Stanley raised Apollo Global's target price from $111 to $137, and maintained an 'equal-weight' rating on the stock. The analyst stated that the recovery of capital markets is on track and will accelerate the flywheel of the private market. Despite the reduction in expected third-quarter exits and longer-than-expected conversion time of the trade pipeline, the company hopes that management comments and forward-looking outlook will provide support for the stock.

Barclays raised Apollo Global's target stock price from $128 to $148 and maintained its 'overweight' rating as part of a preview of third-quarter financial reports for brokerages, asset managers, and exchanges. The company believes that we are approaching a 'normal' market environment, and the public and M&A markets are 'showing vitality,' with rate expectations leading to 'new optimism.' However, the analyst informed investors in a research report that third-quarter market activity is weaker than expected.

Goldman Sachs raised Apollo Global's target price from $128 to $135 and maintained a 'buy' rating on the stock. The company stated that lower rates and 'slow' trading recovery pose downside risks for most capital market stocks in the third-quarter report. Although the faster rate cuts and prospects of a strong stock market 'have driven risk preference behavior for many capital market stocks,' trading activity remains subdued. This continues to be a persistent resistance for many alternative managers as valuation multiples are 'very high,' deteriorating organic growth for most traditional managers in the third quarter, and lower rates pose 'significant risks' to most brokerages and wealth managers, according to analysts in a research report. Goldman Sachs sees exchanges and trust banks as 'relative bright spots' for third-quarter performance.

JPMorgan raised its target price for Apollo Global from $129 to $143 and maintained an 'overweight' rating on the stock following an investor day. The company believes that the main forecasts for the next five years, such as a 20% average fee-related income growth and 10% average spread-related income growth, are achievable. This analyst has a more optimistic view of Apollo, especially as profit shifts are expected to lean more towards asset management.

Performance Outlook

According to Bloomberg data, analysts' latest forecasts, $Apollo Global Management (APO.US)$ 预计Q3实现营收4.122 billion美元，GAAP下每股收益1.73美元。

About the company

Apollo Global Management Inc是美国另类投资管理公司，服务于化工、制造和工业、自然资源、消费者和零售、消费者服务、商业服务、金融服务、休闲、媒体、电信和技术等各个领域。 该公司经营三个业务分部，即资产管理分部、退休服务分部和本金投资分部，退休服务分部为公司产生了最大收入。