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Apollo Global Management (NYSE:APO) posted on Thursday Q1 earnings that fell short of the average analyst estimate and slid sequentially as lower premiums and investment-related gains weighed on revenue. But that was offset by a notable decline in expenses.
“Our solid FRE and SRE results in the first quarter were on-trend with normalized growth rates for the business,” said CEO Marc Rowan, adding “capital formation and origination activity in the quarter were robust, with inflows and debt originations volume each totaling $40 billion.”
Q1 adjusted EPS of $1.72, trailing the $1.78 consensus, fell from $1.91 in Q4 2023 and rose from $1.42 in the year-earlier quarter.
Total revenue of $7.04B retreated from $11.0B in the prior quarter and increased from $5.3B in Q1 2023. The sequential decline was mainly driven by Q/Q slides in premiums and investment-related gains.
APO slipped 0.7% in premarket trading.
Total expenses fell to $4.89B from $9.18B in Q4 2023 and $3.57B in Q1 2023.
Net investment income came in at $3.58B, compared with $3.35B in the previous quarter and $2.61B in Q1 of last year.
Total assets under management were $671B, up from $651B in Q4 2023 and +12% from a year ago.
Fee-related earnings of $462B advanced from $457B in Q4 2023 and $397B in Q1 2023. Spread-related earnings of $817B vs. $748B in Q4 2023 and $688B in Q1 2023.
Earlier, Apollo (APO) non-GAAP EPS of $1.72 misses by $0.06.
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