We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
KKR Gains on Q1 Earnings Beat as Revenues & AUM Rise, Expenses Up Y/Y
Read MoreHide Full Article
KKR & Co. Inc.’s (KKR - Free Report) first-quarter 2025 adjusted net income per share of $1.15 surpassed the Zacks Consensus Estimate of $1.13. The bottom line increased from 97 cents reported in the prior-year quarter.
Shares of KKR rallied 1.6% in pre-market trading on better-than-expected performance.
Results primarily reflected impressive growth in assets under management (AUM) and record transaction fees for the capital markets business. However, an increase in expenses acted as a headwind.
Net loss attributable to the company (GAAP basis) was $185.9 million against net income of $682.2 million in the year-ago quarter.
KKR’s Total Revenues Rise, Expenses Up
Total segment revenues amounted to $1.2 billion, jumping 21.6% on a year-over-year basis. The rise was driven by higher management fees, fee-related performance revenues and transaction and monitoring fees. The top line also beat the Zacks Consensus Estimate of $1.19 billion.
Total segment expenses increased 18.8% to $377.5 million.
As of March 31, 2025, total AUM grew 14.8% year over year to $664.3 billion. Further, fee-paying AUM summed $526 billion, which increased 11.7% from the year-ago quarter.
KKR Total Operating Earnings & Fee-Related Earnings Rise
Total operating earnings rose 15.6% year over year to $1.11 billion. The upside was driven by growth in fee-related earnings.
The company posted fee-related earnings of $822.6 million, up 23% year over year.
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 likely to remain elevated. Also, the current tough operating environment is a concerning factor.
Blackstone’s (BX - Free Report) first-quarter 2024 distributable earnings of $1.09 per share surpassed the Zacks Consensus Estimate of $1.04. The figure reflects a rise of 11% from the prior-year quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Results benefited from higher segment revenues and a surge in AUM balance. However, an increase in GAAP expenses was a headwind form BX.
Federated Hermes, Inc.’s (FHI - Free Report) first-quarter 2025 adjusted earnings per share of $1.10 topped the Zacks Consensus Estimate of 91 cents. The bottom line grew 23.6% from the year-ago quarter.
Increased net administrative service fees and net investment advisory fees are major driving factors for FHI’s quarterly results. The company’s total managed assets touched a record level. A rise in revenues and a decline in expenses were added advantages.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
KKR Gains on Q1 Earnings Beat as Revenues & AUM Rise, Expenses Up Y/Y
KKR & Co. Inc.’s (KKR - Free Report) first-quarter 2025 adjusted net income per share of $1.15 surpassed the Zacks Consensus Estimate of $1.13. The bottom line increased from 97 cents reported in the prior-year quarter.
Shares of KKR rallied 1.6% in pre-market trading on better-than-expected performance.
Results primarily reflected impressive growth in assets under management (AUM) and record transaction fees for the capital markets business. However, an increase in expenses acted as a headwind.
Net loss attributable to the company (GAAP basis) was $185.9 million against net income of $682.2 million in the year-ago quarter.
KKR’s Total Revenues Rise, Expenses Up
Total segment revenues amounted to $1.2 billion, jumping 21.6% on a year-over-year basis. The rise was driven by higher management fees, fee-related performance revenues and transaction and monitoring fees. The top line also beat the Zacks Consensus Estimate of $1.19 billion.
Total segment expenses increased 18.8% to $377.5 million.
As of March 31, 2025, total AUM grew 14.8% year over year to $664.3 billion. Further, fee-paying AUM summed $526 billion, which increased 11.7% from the year-ago quarter.
KKR Total Operating Earnings & Fee-Related Earnings Rise
Total operating earnings rose 15.6% year over year to $1.11 billion. The upside was driven by growth in fee-related earnings.
The company posted fee-related earnings of $822.6 million, up 23% year over year.
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 likely to remain elevated. Also, the current tough operating environment is a concerning factor.
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 #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of KKR’s Peers
Blackstone’s (BX - Free Report) first-quarter 2024 distributable earnings of $1.09 per share surpassed the Zacks Consensus Estimate of $1.04. The figure reflects a rise of 11% from the prior-year quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Results benefited from higher segment revenues and a surge in AUM balance. However, an increase in GAAP expenses was a headwind form BX.
Federated Hermes, Inc.’s (FHI - Free Report) first-quarter 2025 adjusted earnings per share of $1.10 topped the Zacks Consensus Estimate of 91 cents. The bottom line grew 23.6% from the year-ago quarter.
Increased net administrative service fees and net investment advisory fees are major driving factors for FHI’s quarterly results. The company’s total managed assets touched a record level. A rise in revenues and a decline in expenses were added advantages.