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Apollo Global Management, Inc. APO and its subsidiary, Athene Holding Ltd., reported preliminary estimates of the company’s alternative net investment income for the fourth quarter of 2024.
Alternative net investment income is a component of spread related earnings, which is used to assess the performance of the company's Retirement Services segment.
APO’s Preliminary Net Investment Income Details
The company estimates alternative net investment income to be nearly $265 million (pre-tax) for the fourth quarter ended Dec. 31, 2024, which equates to an estimated 9% annualized return on alternative net investments.
Apollo projects that, among these alternative net investments, the annualized return on Athene's investment in a pooled investment vehicle, which holds the large majority of its alternative investment portfolio, will be 11% for the fourth quarter, and the annualized return on Athene's investments in other alternative investments, such as retirement services platforms, will be 5% for the same period. Alternative investment income attributable to non-controlling interests is not included in these numbers.
APO’s fourth-quarter 2024 alternative income is expected to be higher than the alternative net investment income of $190 million reported in the fourth quarter of 2023.
Alternative investment income is expected to witness a solid increase, driven by global economic growth, technological advancements, digital transformation in the financial sector and the rising demand for capital raising.
APO’s Price Performance & Zacks Rank
Over the past six months, APO shares have gained 39.4% compared with the industry’s rise of 28.4%.
Image Source: Zacks Investment Research
Currently, Apollo carries a Zacks Rank #3 (Hold).
Better-Ranked Finance Stocks
A couple of better-ranked stocks from the finance space are Brookfield Asset Management Inc. BAM and Burford Capital Limited BUR. BAM and BUR currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BAM’s earnings for the current fiscal year has been revised 2.8% upward over the past 60 days. Brookfield Asset Management's share price has increased 41.6% over the past six months.
Earnings estimates for BUR for the current year have been revised 14.7% upward over the past 60 days. Over the past six months, Burford Capital’s shares have gained 0.1%.
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