The New York-based KKR & Co. Inc. (KKR) is a private equity and real estate investment firm that specializes in acquisitions, leveraged buyouts, management buyouts, credit special situations, growth equity, mature, distressed, turnaround, lower middle and middle market investments. With a market cap of $124.1 billion, the company is expected to announce its fiscal Q3 earnings results before the market opens on Thursday, Oct. 24.
Ahead of this event, analysts project the private equity company to report a profit of $1.05 per share, up 43.8% from $0.73 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the last four quarters while missing on one another occasion. Its earnings for the last quarter outpaced the consensus estimates by almost 2.3%, thanks to the company’s robust growth in management, transaction, and performance fees.
For fiscal 2024, analysts expect KKR to report an EPS of $3.94, up 41.2% from $2.79 in fiscal 2023. Moreover, EPS is expected to increase 33.8% year-over-year to $5.27 in fiscal 2025.
Shares of KKR have rallied nearly 68.8% on a YTD basis, significantly outpacing both the S&P 500 Index's ($SPX) nearly 23% surge and the Financial Select Sector SPDR Fund's (XLF) 26.7% return over the same period.
On Jul. 31, shares of KKR jumped 2.9% after its Q2 earnings release as its revenue of $4.2 billion increased 15% from a year ago, and its fee-related earnings (FRE) climbed 25% year-over-year to $755 million. The company’s assets under management (AUM) also grew 16% from a year ago, totaling $601 billion, further contributing to its upward price movement. However, the company’s EPS declined 23.4% on a yearly basis to $0.72 due to an increase in its total expenses.
Analysts' consensus view on KKR’s stock is optimistic, with a "Strong Buy" rating overall. Among 18 analysts covering the stock, 14 recommend a "Strong Buy," one suggests a "Moderate Buy," and three indicate “Hold.” This configuration is more bullish than three months ago, with 12 analysts suggesting a "Strong Buy."
The average analyst price target for KKR is $149.00, indicating a 6.6% potential upside from the current levels.
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