KKR & Co. Inc. KKR has reported a third-quarter 2024 adjusted net income per share of $1.38, which surpassed the Zacks Consensus Estimate of $1.18. However, the bottom line increased 56.8% from the prior-year quarter.
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Results primarily reflected impressive growth in assets under management (AUM) and record transaction fees for the capital markets business. However, increased expenses acted as headwinds.
Net income attributable to the company for the quarter was $654.5 million, down 55.6% from the year-ago quarter.
KKR’s Total Segment Revenues & Expenses Increase
Total segment revenues amounted to $1.42 billion, up 99.8% on a year-overyear basis. The top line surpassed the Zacks Consensus Estimate of $1.23 billion.
Total segment expenses rose 20.3% from the prior-year quarter to $415.8 million.
KKR AUM Improves
As of Sept. 30, 2024, total AUM grew 18% year over year to $624 billion. Also, fee-paying AUM summed $506 billion, improving 19% from the year-ago quarter.
KKR Total Operating Earnings & Fee-Related Earnings Rise
Total operating earnings rose 71% year over year to $1.3 billion. The upside was driven by growth in fee-related earnings.
The company posted record fee-related earnings in the third quarter, surging 79% year over year to $1 billion. This was driven by growth in management fees and capital markets’ transaction fees. The company’s capital markets business generated transaction fees of $424 million in the third quarter — the largest transaction fees generated in KKR's history.
Our Viewpoint on KKR
KKR will continue utilizing lucrative investment opportunities on the back of its efficient fund-raising capability in the quarters ahead. Significant growth in fee-related earnings and total operating earnings is aiding company’s financials. However, due to the company’s continuous expansion of its global footprint, expenses are anticipated to remain elevated.
KKR & Co. Inc. Price, Consensus and EPS Surprise
KKR & Co. Inc. price-consensus-eps-surprise-chart | KKR & Co. Inc. Quote
Currently, KKR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Asset Managers
BlackRock’s BLK third-quarter 2024 adjusted earnings of $11.46 per share handily surpassed the Zacks Consensus Estimate of $10.34. The figure reflects growth of 5% from the year-ago quarter.
BLK’s results benefited from a rise in revenues and higher non-operating income. AUM witnessed robust growth and touched the $11.45-trillion mark, driven by net inflows and market appreciation. However, higher expenses acted as a headwind.
Blackstone’s BX third-quarter 2024 distributable earnings of $1.01 per share outpaced the Zacks Consensus Estimate of 91 cents. The figure reflects a rise of 7% from the prior-year quarter.
BX’s results benefited from higher revenues and an improvement in the AUM balance. However, an increase in GAAP expenses acted as a headwind.
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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.
