Gold prices bounce off 3-week lows; demand likely longer term
Apollo Global Management, Inc. (NYSE:APO), a prominent player in the Financial Services industry with an $81.12 billion market capitalization, has released preliminary financial results for the first quarter ended March 31, 2025. According to InvestingPro analysis, the stock is currently trading below its Fair Value, suggesting potential upside opportunity. The company anticipates alternative net investment income of approximately $290 million before taxes for the quarter. This figure translates to an estimated annualized return of 9% on alternative net investments, contributing to the company’s strong profitability metrics over the last twelve months.
The company’s subsidiary, Athene Holding (NYSE:ATH) Ltd., which constitutes a significant portion of Apollo’s alternative investments, is expected to deliver an annualized return of 10% from its pooled investment vehicle. Athene’s other alternative investments, including those in retirement services platforms, are projected to yield an estimated 6% annualized return. These returns align with Apollo’s robust financial performance, reflected in its $25.89 billion revenue over the last twelve months and impressive gross profit margin of 42.67%.
Apollo emphasizes that these figures exclude alternative investment income attributable to non-controlling interests. The company uses alternative net investment income as a measure of performance for its Retirement Services segment, which is part of the broader metric, Spread Related Earnings. This, in turn, contributes to Segment Income, the primary measure by which management evaluates the performance of its operating segments. InvestingPro subscribers can access detailed analysis of Apollo’s performance metrics, including 10+ additional ProTips and comprehensive financial health indicators.
The company cautions that these results are preliminary and subject to change upon completion of financial closing procedures for the period. Moreover, the figures have not been reviewed or audited by independent accountants, and investors are advised not to rely solely on this information for making financial decisions.
Apollo Global Management is scheduled to release its full quarterly earnings and financial supplement on May 2, 2025. The company’s preliminary financial results are based on information found in its recent SEC filing.
In other recent news, Apollo Global Management has been at the forefront of several significant developments. TD Cowen has maintained a Buy rating for Apollo Global, setting a price target of $214, underscoring the company’s strong performance amid economic uncertainties. Piper Sandler also reiterated its Overweight rating with a $202 target, highlighting Apollo’s ability to navigate market dislocations effectively. In terms of acquisitions, Apollo has agreed to purchase a majority stake in OEG Energy Group, valued at over $1 billion, with the transaction expected to close in Q2 2025. This acquisition aligns with Apollo’s broader commitment to energy transition projects.
Additionally, Apollo is exploring the sale of Cox Media Group, potentially valuing it at $4 billion. This move comes as the broadcast TV industry faces challenges such as declining viewership and advertising revenue. Meanwhile, EmployBridge Holding Co., owned by Apollo, experienced a credit rating downgrade to ’SD’ by S&P Global Ratings following a distressed exchange transaction. This downgrade reflects the challenges faced by the staffing provider in meeting its financial commitments.
Apollo’s strategic initiatives and market positioning have garnered attention from analysts, who remain optimistic about the company’s growth prospects despite market volatility. These developments highlight Apollo’s focus on leveraging its platform and expertise to enhance value across its portfolio.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.