• Ares Management Corporation recently reported strong third quarter earnings, with revenue climbing to US$1.66 billion and net income reaching US$288.88 million, alongside an announced quarterly dividend and updates on previously completed share repurchases.

• Notably, the company’s robust year-over-year financial gains illustrate expanded earnings capacity as well as ongoing shareholder returns through both common and preferred dividends.

• We’ll explore how Ares Management’s significant earnings growth in the third quarter may shape its broader investment outlook moving forward.

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To be a shareholder in Ares Management, you need to believe in the global growth of alternative assets and the company’s ability to sustain higher management fees and earnings power, even as competition intensifies. The recently reported third quarter results, featuring sizeable revenue and profit gains, offer reassurance but do not materially alter the biggest short-term catalyst, which remains Ares’ ability to execute and scale new asset classes. The most immediate risk continues to be potential margin compression if peers compete aggressively on fees.

Among recent announcements, the affirmation of a US$1.12 quarterly dividend per Class A share stands out for income-focused investors, reinforcing Ares’ ongoing commitment to shareholder returns. This action provides some stability in the face of competition-driven fee pressure, which remains the central issue that could impact earnings and valuations in the months ahead. The contrast for investors is the risk if fee competition intensifies and…

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Ares Management’s outlook anticipates $7.1 billion in revenue and $2.2 billion in earnings by 2028. This projection is based on a 13.7% annual revenue growth rate and an earnings increase of $1.83 billion from the current $369.5 million.

Uncover how Ares Management’s forecasts yield a $180.00 fair value, a 17% upside to its current price.

Three recent fair value estimates from the Simply Wall St Community range from US$30.55 to US$201.41 per share, showing strikingly different outlooks. While many see upside from rapid growth in alternatives, margin pressure is a key uncertainty you will want to weigh for yourself.

Explore 3 other fair value estimates on Ares Management – why the stock might be worth less than half the current price!