Can Apollo Global Management’s Q2 2018 Impress Investors?

Apollo’s earnings per share

On August 2, Apollo Global Management (APO) is expected to report its second-quarter results. In the first quarter, it saw subdued performance mainly due to its private equity segment. In the second quarter, it’s expected to report EPS of $0.54, which implies a rise of 17.4% YoY (year-over-year).

Can Apollo Global Management’s Q2 2018 Impress Investors?

In the second quarter, Apollo Global could be helped sequentially by improved markets, which could fuel the company’s AUM (assets under management) and management fees. In the first quarter, the company had management fees of $272.2 million, implying a YoY growth of 7.9%.

Apollo’s expected revenues

In the second quarter, analysts expect Apollo Global to generate revenues of $632.4 million, which reflects a rise of 51% YoY. Its revenues in the second quarter could be helped mainly by management and performance fees. The company could also see a sequential rise in AUM, primarily due to expected inflows since investors are showing their interest in alternatives (XLF).

At the end of March, 10% of the company’s investors were comprised of retail and high-net-worth investors. In the first quarter, KKR & Company (KKR) had AUM of $176 billion.

Carlyle Group (CG) is expected to post AUM of $213.6 billion in the second quarter.

Apollo Global is expected to post AUM of $263.9 billion in the second quarter. In the first quarter, its AUM was $247.4 billion. Blackstone Group (BX) had $439.4 billion in AUM as of June 30.