Alternative asset managers KKR and Apollo Global Management topped estimates for Q4 results early Tuesday and hiked their dividends. However, revenue for both firms saw sizable declines. KKR retreated from near a buy point while APO shares eased on results. Meanwhile, Ares Management and Blue Owl Capital report later this week.
KKR reported a 33% increase in earnings to $1.32 per share adjusted on a 26% drop in total revenue to $3.26 billion.
The results cleared FactSet expectations for earnings of $1.28 per share on $1.99 billion in revenue.
Management fees jumped 26% to $906 million while fee-related performance revenue rose 5% to $25 million.
KKR's assets under management increased 15% for the quarter to $638 billion. The firm's total revenue for its asset management segment jumped almost 31% to $2.04 billion.
KKR also announced plans for a $1.1 billion increase in investments to its private equity businesses, including USI Insurance Services, 1-800 Contacts and Heartland Dental. The company expects its Strategic Holdings segment to generate operating earnings in excess of $350 million by 2026, $700 million by 2028 and $1.1 billion by 2030.
KKR also plans to raise its quarterly dividend to 74 cents from 70 cents, starting in its March-ending quarter.
KKR Stock Performance
Shares of KKR retreated 8.5% early Tuesday and fell below their 50-day line. On Monday, shares fell 2.3%, but rebounded from near their 21-day moving average.
Prior to the drop, KKR stock was trading near a 163.68 buy point for a cup base, after falling out of the buy zone on Monday.
Shares have traded around the entry the past two weeks after initially overtaking the buy point on Jan. 23.
KKR is hit a record high of 170.40 on Jan. 31.
Apollo Global Management
Apollo Global Management reported a 16% increase in earnings to $2.22 per share adjusted, beating expectations for $1.89 per share.
Total revenue tumbled 52% to $5.28 billion, primarily driven by a major decline in premiums for retirement services. Retirement services premiums fell to $155 million for the quarter from $3.59 billion last year.
Fee-related revenues jumped 20% to $955 million, clearing FactSet views for $952.5 million.
Apollo Global Management also announced plans to increase its dividend by 10% to $2.04 per share starting in Q1 2025.
APO stock declined 2.7% Tuesday, sliding further from its 50-day and 21-day moving averages after dipping below those levels on Monday.
Apollo Global Management is consolidating with a 189.49 buy point, which matches its intraday record high from Dec. 31. A move above Monday's high of 174.91 would offer an early entry.
Elsewhere, FactSet expects Ares Capital to report a 7% increase in earnings to $1.30 per share for its Q4 results early Wednesday. Blue Owl earnings are seen increasing almost 17% to 21 cents per share.
ARES stock hit a record 199.94 on Jan. 31 and is extended from buy points. OWL stock is trading in a buy zone, above a 25 entry for a double-bottom base.
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