New York-based KKR & Co. Inc. (KKR) is a private equity and real estate investment firm specializing in direct and fund-of-fund investments. Valued at $105.17 billion by market cap, the company specializes in acquisitions, leveraged buyouts, management buyouts, credit special situations, growth equity, mature, mezzanine, distressed, turnaround, lower middle market, and middle market investments. The leading investment company is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Wednesday, Jul. 31.
Ahead of the event, analysts expect KKR to report a profit of $0.89 per share on a diluted basis, up 53.5% from $0.58 per share in the year-ago quarter. The company beat or matched 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 $3.96, up 41.9% from $2.79 in fiscal 2023.
KKR stock has significantly outperformed the S&P 500’s ($SPX) 19.6% gains over the past 52 weeks, with shares up 96.6% during this period. Similarly, it outshined the S&P 500 Financials Sector SPDR’s (XLF) 23.1% gains over the same time frame.
On Jul. 15, KKR shares closed up more than 2% after Citigroup Inc. (C) raised its price target on the stock to $130 from $115.
On Jun. 10, KKR shares rose more than 10% after S&P Dow Jones Indices said that the company would join the S&P 500 before trading opened on Jun. 24. The inclusion of KKR in the $SPX is a testament to its solid growth over the years.
On May 1, KKR reported its Q1 results. The company’s revenue increased 208.8% year over year to $9.66 billion. Its EPS stood at $0.74, up 105.6% from the year-ago quarter. Its fee-related earnings rose by 22% year over year to $669 million. KKR’s adjusted net income increased by 20% year over year to $864 million.
Moreover, the company’s new capital raised amounted to $31 billion, contributing to a total of $88 billion over the last twelve months. Its assets under management rose 13% year over year to $578 billion. KKR shares closed up more than 2% on the day the results were released and have been on an uptrend since then.
Analysts’ consensus opinion on KKR stock is bullish, with a “Strong Buy” rating overall. Out of 15 analysts covering the stock, 13 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and one gives a “Hold.” The average analyst price target for KKR is $120.25, indicating a potential upside of 1.5% from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
