KKR & Co. Inc. KKR is scheduled to announce first-quarter 2024 results on May 1, before the opening bell. Its earnings and revenues in the quarter are expected to have increased on a year-over-year basis.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate. Results benefited from an improvement in revenues and growth in the assets under management (AUM) balance, partly offset by higher expenses.
The company boasts an impressive earnings surprise history. Its earnings surpassed the consensus estimate in each of the trailing four quarters, the average beat being 6.78%.
KKR & Co. Inc. Price and EPS Surprise
KKR & Co. Inc. price-eps-surprise | KKR & Co. Inc. Quote
The Zacks Consensus Estimate for KKR’s first-quarter earnings is pegged at 95 cents per share, which has been revised 15.2% lower over the past 30 days. The figure indicates a rise of 17.3% from the year-ago quarter’s reported number.
The consensus estimate for sales is pegged at $898.1 million, indicating 9.7% year-over-year growth.
Key Factors and Estimates for Q1
KKR & Co. has been witnessing an increase in fee-earning AUM and total AUM on the back of its diversified product and revenue mix, a superior position in the alternative investments space and net inflows. Despite subdued market volatility in the first quarter, the company is expected to have recorded an increase in the AUM balance, supported by overall asset inflows.
The Zacks Consensus Estimate for AUM is pegged at $566.2 billion, suggesting a rise of 11% from the prior-year quarter’s reported number. Likewise, the consensus estimate for fee-paying AUM of $460.7 billion indicates a rise of 10.8%.
The Zacks Consensus Estimate for management fees (segment revenues) for the to-be-reported quarter is pegged at $811.3 million, which indicates 9.9% growth from the prior-year quarter.
The consensus estimate for fee-related performance revenues (segment revenues) of $27.5 million suggests a jump of 26.5%.
Earnings Whispers
Our quantitative model does not conclusively predict an earnings beat for KKR & Co. this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for KKR & Co. is 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q1 Performance of Other Asset Managers
Blackstone’s BX first-quarter 2024 distributable earnings of 98 cents per share were in line with the Zacks Consensus Estimate. The figure reflects a rise of 1% from the prior-year quarter.
BX’s results have benefited from a rise in segment revenues and an improvement in AUM balance. However, higher GAAP expenses have hurt the results to some extent.
BlackRock, Inc.’s BLK first-quarter 2024 adjusted earnings of $9.81 per share handily surpassed the Zacks Consensus Estimate of $9.42. The figure reflects a jump of 24% from the year-ago quarter.
The results benefited from a rise in revenues and higher non-operating income. Further, BLK’s AUM balance witnessed an improvement driven by net inflows. However, higher expenses acted as a dampener.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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