KKR & Co. Inc. (KKR), headquartered in New York, is a private equity and real estate investment firm specializing in direct and fund-of-fund investments. Valued at $125.2 billion by market cap, the leading global investment firm manages investments such as private equity, energy, infrastructure, real estate, credit strategies, and hedge funds. The private equity giant is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Thursday, Feb. 6.
Ahead of the event, analysts expect KKR to report a profit of $1.14 per share on a diluted basis, up 35.7% from $0.84 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect KKR to report EPS of $4.13, up 48% from $2.79 in fiscal 2023. Its EPS is expected to rise 34.6% year over year to $5.56 in fiscal 2025.
KKR stock has considerably outperformed the S&P 500’s ($SPX) 21.8% gains over the past 52 weeks, with shares up 71% during this period. Similarly, it outperformed the Financial Select Sector SPDR Fund’s (XLF) 25.2% gains over the same time frame.
KKR's strong performance is fueled by its $108 billion in available funds for future investments, driving growth in assets under management and record transaction fees. Recent deals like the acquisition of Varsity Brands showcase KKR's strategic investment approach. The company's focus on improving and expanding investment strategies, along with its solid liquidity position, will continue to support growth in AUM and revenue.
On Oct. 24, KKR shares closed up more than 3% after reporting its Q3 results. The company’s revenue stood at $4.8 billion, up 44.5% year over year. Its adjusted EPS was $1.38, surpassing analyst estimates of $1.20.
Analysts’ consensus opinion on KKR stock is bullish, with a “Strong Buy” rating overall. Out of 18 analysts covering the stock, 14 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and three give a “Hold.” KKR’s average analyst price target is $170.37, indicating a potential upside of 20.9% from the current levels.
