Examining the Future: KKR & Co's Earnings Outlook

KKR & Co KKR is preparing to release its quarterly earnings on Thursday, 2024-10-24. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect KKR & Co to report an earnings per share (EPS) of $1.22.

The announcement from KKR & Co is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Past Earnings Performance

In the previous earnings release, the company beat EPS by $0.02, leading to a 3.0% drop in the share price the following trading session.

Here's a look at KKR & Co's past performance and the resulting price change:

KKR & Co Share Price Analysis

Shares of KKR & Co were trading at $140.17 as of October 22. Over the last 52-week period, shares are up 155.55%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on KKR & Co

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on KKR & Co.

KKR & Co has received a total of 18 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $143.61, the consensus suggests a potential 2.45% upside.

Analyzing Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of BlackRock, Brookfield and Ares Management, three key industry players, offering insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Outperform trajectory for BlackRock, with an average 1-year price target of $1023.88, indicating a potential 630.46% upside.
• For Brookfield, analysts project an Outperform trajectory, with an average 1-year price target of $50.96, indicating a potential 63.64% downside.
• For Ares Management, analysts project an Neutral trajectory, with an average 1-year price target of $161.31, indicating a potential 15.08% upside.

Peer Metrics Summary

The peer analysis summary provides a snapshot of key metrics for BlackRock, Brookfield and Ares Management, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

KKR & Co ranks highest in revenue growth among its peers. It also leads in gross profit margin. However, it has the lowest return on equity. Overall, KKR & Co is positioned in the top tier compared to its peers in this analysis.

Get to Know KKR & Co Better

KKR is one of the world's largest alternative asset managers, with $601.3 billion in total managed assets, including $487.3 billion in fee-earning AUM, at the end of June 2024. The company has two core segments: asset management (which includes private markets-private equity, credit, infrastructure, energy, and real estate-and public markets-primarily credit and hedge/investment fund platforms) and insurance (following the firm's initial investment in, and then ultimate purchase of, Global Atlantic Financial Group, which is engaged in retirement/annuity and life insurance lines as well as reinsurance).

KKR & Co: Delving into Financials

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: KKR & Co's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 14.54%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 16.26%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): KKR & Co's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 3.1%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.19%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: KKR & Co's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.32, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for KKR & Co visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.