KKR & Co. (KKR) Down 20% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for KKR & Co. Inc. (KKR). Shares have lost about 20% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is KKR & Co. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. KKR Q4 Earnings Beat on Higher Revenues & AUM, Expenses Rise Y/YKKR & Co. 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.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 IncreaseTotal 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 ImprovesAs 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 RiseTotal 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.Outlook2026Management expects fee-related earnings per share of more than $4.50.Total operating earnings per share is projected to be more than $7.Adjusted net income per share is anticipated to be $7-$8.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.The consensus estimate has shifted -11.85% due to these changes.VGM ScoresCurrently, KKR & Co. has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise KKR & Co. has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KKR & Co. Inc. (KKR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks