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KKR & Co. (KKR) to Report Q2 Earnings: What's in the Cards?
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KKR & Co. Inc. (KKR - Free Report) is slated to report second-quarter 2024 results on Jul 31, before the opening bell. Its earnings and revenues in the quarter are expected to have increased on a year-over-year basis.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate. Results benefited from higher revenues and growth in the assets under management (AUM) balance, partly offset by a rise in expenses.
The company boasts an impressive earnings surprise history. Its earnings surpassed the consensus estimate in each of the trailing four quarters, the average beat being 4.95%.
The Zacks Consensus Estimate for KKR’s second-quarter earnings is pegged at $1.05 per share, which has been revised 3.7% lower over the past 30 days. The figure indicates a jump of 43.8% from the year-ago quarter’s reported number.
The consensus estimate for sales is pegged at $1.07 billion, indicating 10.1% year-over-year growth.
Key Factors and Estimates for Q2
KKR & Co. has been witnessing an increase in fee-earning AUM and total AUM driven by a diversified product and revenue mix, a superior position in the alternative investments space and net inflows. Given the solid market performance in the second quarter, the company is expected to have recorded an increase in the AUM balance, supported by overall asset inflows.
The Zacks Consensus Estimate for AUM is pegged at $600 billion, suggesting a rise of 15.7% from the prior-year quarter’s reported number. Likewise, the consensus estimate for fee-paying AUM of $487 billion indicates an increase of 15.9%.
The Zacks Consensus Estimate for management fees (segment revenues) for the to-be-reported quarter is pegged at $851.6 million, which indicates 13.7% growth from the prior-year quarter.
The consensus estimate for fee-related performance revenues (segment revenues) of $27.6 million suggests a fall of 2.7%.
Talking about expenses, KKR is likely to have experienced elevated costs in the to-be-reported quarter due to higher employee compensation and benefits, along with increased investment in technological development to align with changing customer needs.
Earnings Whispers
Our quantitative model does not conclusively predict an earnings beat for KKR & Co. this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for KKR & Co. is 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Affiliated Managers Group Inc.’s (AMG - Free Report) second-quarter 2024 economic earnings of $4.67 per share outpaced the Zacks Consensus Estimate of $4.60. The bottom line also grew 4.9% from the prior-year number.
Results were aided by an improvement in the AUM balance and a decline in expenses. Further, AMG had a robust liquidity position. However, lower revenues were the undermining factor.
T. Rowe Price Group, Inc. (TROW - Free Report) reported second-quarter 2024 adjusted earnings per share of $2.26, which beat the Zacks Consensus Estimate by a penny. Also, the bottom line increased 11.9% year over year.
TROW's net revenues were supported by a rise in the AUM balance. Further, appreciation in cash and cash equivalents will help the company to continue investing. However, a rise in expenses was a woe.
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KKR & Co. (KKR) to Report Q2 Earnings: What's in the Cards?
KKR & Co. Inc. (KKR - Free Report) is slated to report second-quarter 2024 results on Jul 31, before the opening bell. Its earnings and revenues in the quarter are expected to have increased on a year-over-year basis.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate. Results benefited from higher revenues and growth in the assets under management (AUM) balance, partly offset by a rise in expenses.
The company boasts an impressive earnings surprise history. Its earnings surpassed the consensus estimate in each of the trailing four quarters, the average beat being 4.95%.
KKR & Co. Inc. Price and EPS Surprise
KKR & Co. Inc. price-eps-surprise | KKR & Co. Inc. Quote
The Zacks Consensus Estimate for KKR’s second-quarter earnings is pegged at $1.05 per share, which has been revised 3.7% lower over the past 30 days. The figure indicates a jump of 43.8% from the year-ago quarter’s reported number.
The consensus estimate for sales is pegged at $1.07 billion, indicating 10.1% year-over-year growth.
Key Factors and Estimates for Q2
KKR & Co. has been witnessing an increase in fee-earning AUM and total AUM driven by a diversified product and revenue mix, a superior position in the alternative investments space and net inflows. Given the solid market performance in the second quarter, the company is expected to have recorded an increase in the AUM balance, supported by overall asset inflows.
The Zacks Consensus Estimate for AUM is pegged at $600 billion, suggesting a rise of 15.7% from the prior-year quarter’s reported number. Likewise, the consensus estimate for fee-paying AUM of $487 billion indicates an increase of 15.9%.
The Zacks Consensus Estimate for management fees (segment revenues) for the to-be-reported quarter is pegged at $851.6 million, which indicates 13.7% growth from the prior-year quarter.
The consensus estimate for fee-related performance revenues (segment revenues) of $27.6 million suggests a fall of 2.7%.
Talking about expenses, KKR is likely to have experienced elevated costs in the to-be-reported quarter due to higher employee compensation and benefits, along with increased investment in technological development to align with changing customer needs.
Earnings Whispers
Our quantitative model does not conclusively predict an earnings beat for KKR & Co. this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for KKR & Co. is 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q2 Performance of Other Asset Managers
Affiliated Managers Group Inc.’s (AMG - Free Report) second-quarter 2024 economic earnings of $4.67 per share outpaced the Zacks Consensus Estimate of $4.60. The bottom line also grew 4.9% from the prior-year number.
Results were aided by an improvement in the AUM balance and a decline in expenses. Further, AMG had a robust liquidity position. However, lower revenues were the undermining factor.
T. Rowe Price Group, Inc. (TROW - Free Report) reported second-quarter 2024 adjusted earnings per share of $2.26, which beat the Zacks Consensus Estimate by a penny. Also, the bottom line increased 11.9% year over year.
TROW's net revenues were supported by a rise in the AUM balance. Further, appreciation in cash and cash equivalents will help the company to continue investing. However, a rise in expenses was a woe.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.