Apollo Global (APO) delivered 1Q 2021 results that topped guidance with record GAAP earnings of $2.81 a share. The company also reported record fee-related earnings that were up 26% to $0.65 a share. EPS of $0.66 came in higher than consensus estimates of $0.58. According to Chief Executive Officer Marc Rowan, the company remains well-positioned for stellar results in FY21 with the reopening of the economy.
Apollo Global achieved significant milestones during the quarter, including making progress on implementing its strategic growth plan. It also merged with Athene, scaled its High-Grade Alpha platform, and launched its Credit Secondaries business.
Apollo Global confirmed a $0.50 cash dividend on its Class A Common Stock. The dividend is to be paid on May 28 to shareholders of record as of close of business on May 20, 2021. The company also intends to distribute an annual dividend of $1.60 per share, dependent on growth in the core business. (See Apollo Global stock analysis on TipRanks).
Oppenheimer analyst Chris Kotowski reiterated a Buy rating on Apollo Global following the impressive first-quarter results.
“APO reported 1Q21 after-tax distributable earnings (DE) of $0.66/share versus our $0.59 estimate and consensus’ $0.58E. Fee related earnings (FRE) of $0.65/share were in line with our $0.65/estimate as base management fees of $449M were only ~ $1M off our estimate with other fee related revenues and expenses roughly in line.” Kotowski stated.
The analyst has a $60 price target on the stock implying 6.6% upside potential to current levels.
Consensus among analysts on Wall Street is that Apollo Global Management is a Moderate Buy based on 5 Buy and 5 Hold ratings. The average analyst price target of $58.15 implies 3.3% upside potential to current levels.
APO scores an 8 out of 10 on TipRanks’ Smart Score rating system, implying it is likely to outperform the overall market.