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KKR Q4 Earnings Beat on Higher Revenues & AUM, Expenses Rise Y/Y

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KKR & Co. Inc. (KKR - Free Report) has reported fourth-quarter 2024 adjusted net income per share of $1.32, which surpassed the Zacks Consensus Estimate of $1.27. The bottom line increased from $1 reported in the prior-year quarter.

Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.

For 2024, adjusted net income per share was $3.46, which missed the Zacks Consensus Estimate of $3.54. This compares unfavorably with $4.14 reported in the year-ago quarter.

Results primarily reflected impressive growth in assets under management (AUM) and record transaction fees for the capital markets business. However, increased expenses acted as headwinds.

Net income attributable to the company (GAAP basis) for the quarter was $1.12 billion, up 8.2% from the year-ago quarter.

For 2024, the company reported net income attributable to the company (GAAP basis) of $3.08 billion, which declined 16.4% year over year.

KKR’s Total Revenues & Expenses Increase

Total segment revenues amounted to $1.26 billion, up 17% on a year-over-year basis. The top line surpassed the Zacks Consensus Estimate of $1.23 billion.

Full-year revenues were $4.8 billion, which increased 23.9% year over year. The top line beat the Zacks Consensus Estimate of $4.74 billion. 

Total segment expenses rose 3.7% from the prior-year quarter to $412 million.

KKR AUM Improves

As of Dec. 31, 2024, total AUM grew 15.3% year over year to $637.6 billion. Also, fee-paying AUM summed $512 billion, which increased 14.7% from the year-ago quarter.

KKR Total Operating Earnings & Fee-Related Earnings Rise

Total operating earnings rose 19.5% year over year to $1.1 billion. The upside was driven by growth in fee-related earnings.

The company posted fee-related earnings of $843 million, up 24.8% year over year. This was primarily driven by growth in management fees and capital markets’ transaction fees in addition to a lower fee related compensation margin.

Our Viewpoint on KKR

KKR will continue utilizing lucrative investment opportunities on the back of its efficient fund-raising capability in the quarters ahead. Significant growth in fee-related earnings and total operating earnings is aiding the company’s financials. However, due to the company’s continuous expansion of its global footprint, expenses are anticipated to remain elevated.

KKR & Co. Inc. Price, Consensus and EPS Surprise

KKR & Co. Inc. Price, Consensus and EPS Surprise

KKR & Co. Inc. price-consensus-eps-surprise-chart | KKR & Co. Inc. Quote

Currently, KKR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of KKR’s Peers

Invesco’s (IVZ - Free Report) fourth-quarter 2024 adjusted earnings of 52 cents per share surpassed the Zacks Consensus Estimate of 49 cents. Moreover, the bottom line increased 10.6% from the prior-year quarter.

The results primarily gained from a decline in adjusted expenses and higher adjusted net revenues. An increase in AUM balance on decent inflows was a positive for IVZ.

BlackRock’s (BLK - Free Report) fourth-quarter 2024 adjusted earnings of $11.93 per share surpassed the Zacks Consensus Estimate of $11.44. The figure reflects a rise of 23.5% from the year-ago quarter.

BLK’s results benefited from a rise in revenues. AUM witnessed robust growth and touched the $11.55 trillion mark driven by net inflows, partially offset by market depreciation and negative forex impact. However, higher expenses and lower non-operating income acted as headwinds.


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