KKR Q3 Earnings Beat on Record Y/Y Fee-Related Earnings Growth

KKR & Co. Inc. KKR has reported a third-quarter 2024 adjusted net income per share of $1.38, which surpassed the Zacks Consensus Estimate of $1.18. However, the bottom line increased 56.8% from the prior-year quarter.Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.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 for the quarter was $654.5 million, down 55.6% from the year-ago quarter.KKR’s Total Segment Revenues & Expenses IncreaseTotal segment revenues amounted to $1.42 billion, up 99.8% on a year-overyear basis. The top line surpassed the Zacks Consensus Estimate of $1.23 billion.Total segment expenses rose 20.3% from the prior-year quarter to $415.8 million.KKR AUM ImprovesAs of Sept. 30, 2024, total AUM grew 18% year over year to $624 billion. Also, fee-paying AUM summed $506 billion, improving 19% from the year-ago quarter.KKR Total Operating Earnings & Fee-Related Earnings RiseTotal operating earnings rose 71% year over year to $1.3 billion. The upside was driven by growth in fee-related earnings.The company posted record fee-related earnings in the third quarter, surging 79% year over year to $1 billion. This was driven by growth in management fees and capital markets’ transaction fees. The company’s capital markets business generated transaction fees of $424 million in the third quarter — the largest transaction fees generated in KKR's history.Our Viewpoint on KKRKKR 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 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-eps-surprise-chart | KKR & Co. Inc. QuoteCurrently, 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 Other Asset ManagersBlackRock’s BLK third-quarter 2024 adjusted earnings of $11.46 per share handily surpassed the Zacks Consensus Estimate of $10.34. The figure reflects growth of 5% from the year-ago quarter.BLK’s results benefited from a rise in revenues and higher non-operating income. AUM witnessed robust growth and touched the $11.45-trillion mark, driven by net inflows and market appreciation. However, higher expenses acted as a headwind.Blackstone’s BX third-quarter 2024 distributable earnings of $1.01 per share outpaced the Zacks Consensus Estimate of 91 cents. The figure reflects a rise of 7% from the prior-year quarter.BX’s results benefited from higher revenues and an improvement in the AUM balance. However, an increase in GAAP expenses acted as a headwind.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Blackstone Inc. (BX): Free Stock Analysis Report BlackRock, Inc. (BLK): Free Stock Analysis Report KKR & Co. Inc. (KKR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks