Core Insights - KKR reported strong fourth-quarter and full-year 2024 earnings, surpassing analysts' expectations with an adjusted EPS of $1.32 and total revenue of $3.26 billion, indicating robust performance in asset management and insurance segments [2][3] Financial Performance - Adjusted EPS for Q4 2024 was $1.32, exceeding the estimate of $1.28 and showing a 32% increase from $1.00 in Q4 2023 [4] - Total revenue for Q4 2024 was $3.26 billion, significantly higher than the expected $1.96 billion, although it represented a 26.4% decrease from $4.43 billion in Q4 2023 [4] - Fee-related earnings reached $843 million, a 25% increase from $675 million in Q4 2023 [4] - Total operating earnings were $1.1 billion, up 19.5% from $921 million in Q4 2023 [4] Business Overview - KKR is a leading global investment firm with diversified asset management operations, including private equity, real assets, and credit solutions, with a strong presence in insurance through Global Atlantic [5] - The firm focuses on strategic growth and leverages its extensive network and capital base to enhance its global reach [5][6] Growth Trajectories - KKR's assets under management increased by 15% to $638 billion, driven by a 14% rise in management fees [7] - The insurance segment's net investment income grew significantly, with total earnings rising from $816 million in 2023 to $1.01 billion [8] - Strategic holdings in private equity investments are increasing, with a goal to boost operating earnings in that segment to $1.1 billion by 2030 [9] Future Outlook - KKR's management did not provide specific guidance but expressed confidence in ongoing growth initiatives [11] - The annualized dividend is set to increase from $0.70 to $0.74 per share, reflecting sustained earnings growth [12] - Strategic priorities include investments in infrastructure and technology, as well as expanding the insurance platform through Global Atlantic [12]

Core Insights - KKR & Co. Inc. reported a revenue of $1.26 billion for the quarter ended December 2024, reflecting a 17% increase year-over-year and surpassing the Zacks Consensus Estimate of $1.23 billion by 2.40% [1] - The company's EPS for the quarter was $1.32, up from $1.00 in the same quarter last year, exceeding the consensus estimate of $1.27 by 3.94% [1] Financial Performance Metrics - KKR's Assets Under Management (AUM) for new capital raised was $26.71 billion, exceeding the average estimate of $23.19 billion [4] - Private Equity AUM stood at $195.36 billion, slightly above the average estimate of $195.35 billion [4] - Fee Paying AUM was reported at $511.96 billion, below the average estimate of $520.43 billion [4] - Real Assets Segment's ending AUM for fee-paying assets was $139.68 billion, compared to the average estimate of $142.22 billion [4] - Fee Related Earnings from performance revenues were $25.09 million, lower than the average estimate of $34.34 million, but showed a 5% increase year-over-year [4] - Transaction and Monitoring Fees, Net, were reported at $323.80 million, exceeding the average estimate of $258.94 million, representing a 22.5% year-over-year increase [4] - Realized Investment Income in the Principal Activities Segment was $109.82 million, below the average estimate of $165.33 million [4] - Management Fees were reported at $906.12 million, slightly below the average estimate of $918.60 million, reflecting a 15.5% year-over-year increase [4] - Fee Related Earnings totaled $842.99 million, surpassing the average estimate of $825.31 million [4] - Operating Earnings from Strategic Holdings were $7.81 million, below the average estimate of $8.59 million [4] - Other Operating Expenses were reported at -$192.40 million, worse than the average estimate of -$180.56 million [4] - Fee Related Compensation was -$219.62 million, slightly worse than the average estimate of -$213.37 million [4] Stock Performance - KKR's shares have returned +8.3% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

KKR KKR & Co. Inc. Reports Fourth Quarter 2024 Financial Results February 4, 2025 KKR Reports Fourth Quarter 2024 Financial Results New York, February 4, 2025 – KKR & Co. Inc. (NYSE: KKR) today reported its fourth quarter Conference Call A conference call to discuss KKR's financial results will be held on February 4, 2025 at 10:00 a.m. ET. The conference call may be accessed by dialing +1 (877) 407-0312 (U.S. callers) or +1 (201) 389-0899 (non-U.S. callers); a pass code is not required. Additionally, the co ...

Wall Street analysts forecast that KKR & Co. Inc. (KKR) will report quarterly earnings of $1.29 per share in its upcoming release, pointing to a year-over-year increase of 29%. It is anticipated that revenues will amount to $1.23 billion, exhibiting an increase of 14.4% compared to the year-ago quarter.The consensus EPS estimate for the quarter has undergone a downward revision of 2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed ...

Group Overview - Dawsongroup is a leading independent asset leasing business headquartered in Milton Keynes, UK, with a strong market position and a diverse range of business-critical solutions [2][7] - The company has over 1,150 employees across 11 countries and has developed solid supplier relationships and a diversified customer base since its inception in 1935 [2][8] - Dawsongroup specializes in asset leasing, including vehicles and refrigerated boxes, and offers customized assets along with maintenance and repairs [2][3] Acquisition Details - KKR has entered into a binding agreement to acquire Dawsongroup as part of its Global Climate strategy, which focuses on scaling net-zero solutions and decarbonizing higher emitting assets [1][4] - The acquisition aims to support Dawsongroup's ambitious growth strategy and fleet transition, enhancing its sustainability-led ambitions [1][4] - The transaction is subject to regulatory approvals [6] Financial Performance - Dawsongroup reported a record performance last year with Group EBITDA of approximately £250 million [3] - The company has a sustainable growth strategy in place to unlock its significant potential and expand its market presence [3][5] Strategic Partnership - The partnership with KKR is expected to accelerate the decarbonization of Dawsongroup's vehicle and asset leasing solutions, leveraging KKR's expertise in renewable energy and climate-related investments [4][5] - KKR plans to implement an employee ownership program, allowing Dawsongroup employees to participate in the Group's future success [4] - KKR has invested over $21 billion in renewable energy and climate-related investments, demonstrating its commitment to sustainable solutions [5]

Group 1: Company Overview - KKR is looking to sell its minority stake in Maya, a Philippine FinTech company with 5.4 million customers, potentially valuing Maya at over $2 billion [1] - KKR owns more than 20% of Maya and initially invested in the company in October 2018 when it was known as Voyager Innovations [1] Group 2: Funding and Valuation - Maya was valued at $1.4 billion in its most recent funding round, raising $210 million in April 2022 [2] - The company achieved unicorn status as the owner of FinTech PayMaya and neobank Maya Bank during this funding round [2] - Previous funding rounds included $167 million in June 2021, $120 million in April 2020, and $215 million in 2018 [3] Group 3: Services and Expansion - Maya plans to use the funds from its funding rounds to launch new services for Maya Bank, including savings and credit, and expand PayMaya's offerings with cryptocurrency and micro-investments insurance [3] - The company rebranded its PayMaya mobile wallet to Maya in April 2022, expanding its services to include digital banking and crypto features [4] - Maya Bank was launched six months after receiving a digital banking license from the Bangko Sentral ng Pilipinas (BSP) [4] Group 4: Industry Context - Mynt, the owner of GCash, was valued at $5 billion in August 2022, indicating strong competition in the Philippine digital wallet market [5] - GCash has reached 94 million users, approximately 78% of the Philippine population, highlighting the growing adoption of digital wallets in the country [5]

Core Insights - The stock price of FS KKR Capital Corp (NYSE: FSK) is nearing 52-week highs, indicating a resurgence of investor confidence in the company's investment performance [1] Group 1 - Investors are regaining confidence in FS KKR Capital Corp's business development and investment performance [1] - A previously high non-accrual ratio has been a concern for FS KKR, but it appears to be stabilizing as investor sentiment improves [1]

Earnings Growth and Revenue Strength - KKR witnessed earnings growth of 15.1% over the past three to five years, driven by organic growth and rising AUM balances [3] - The Zacks Consensus Estimate for earnings indicates a 37.7% year-over-year increase for 2024 and 30% growth for 2025 [4] - KKR's net revenues saw a CAGR of 43.3% in the last five years (ended 2023) with some volatility, and the trend persisted in the first nine months of 2024 [4] - The Zacks Consensus Estimate for revenues indicates a 24% year-over-year increase for 2024 and 18.6% growth for 2025 [5] AUM Growth and Ambitious Targets - KKR's total AUM saw a five-year (2018-2023) CAGR of 23.2%, with the trend continuing in the first nine months of 2024 [6] - KKR aims to reach at least $1 trillion in AUM in five years by scaling its core businesses [7] - The company expects to raise more than $300 billion of capital by 2026 across 30 investment solutions and three flagship strategies [11] - KKR projects fee-related earnings per share to be more than $4.50 (implying a 2023-2026 CAGR of 20%) and total operating earnings to exceed $7 per share [12] - Adjusted net income per share is anticipated to be $7-$8 (implying a 2023-2026 CAGR of 30%) [12] Liquidity and Shareholder Rewards - As of Sept. 30, KKR had an outstanding debt of $8.8 million, lower than the cash and investments of $16.3 million, indicating a solid liquidity position [8] - KKR hiked its dividend 6% to 18 cents per share in March 2024 and has raised dividends five times in the last five years with an annualized growth rate of 7.1% [9] - The company has a share repurchase plan in place, with approximately $69 million of authorization remaining under the program as of October 2024 [10] Price Performance and Industry Comparison - KKR shares have skyrocketed 86.3% in the past year compared with the industry's rise of 42.2% [13] - The company currently carries a Zacks Rank 2 (Buy) [15] Other Key Picks in Asset Management - Victory Capital Holdings, Inc. (VCTR) sports a Zacks Rank 1 (Strong Buy) and its shares have gained 20.2% in the past three months [17] - Federated Hermes Inc. (FHI) carries a Zacks Rank 2 and its shares have rallied 14.5% in the past three months [18]

Core Insights - KKR has demonstrated significant growth in total assets under management (AUM), with a five-year compound annual growth rate (CAGR) of 23.2% from 2018 to 2023, continuing into the first nine months of 2024 [2] - The company aims to reach at least $1 trillion in AUM within five years, supported by its plans to raise over $300 billion of capital by 2026 across various investment strategies [13][14] - KKR's stock has performed exceptionally well, increasing by 83.6% over the past year, outperforming its industry and peers [8] AUM Growth - KKR's AUM growth is attributed to ongoing improvements and additions to its investment strategies [2] - The company expects to tap into an $11 trillion market opportunity in private wealth by 2027 [14] Financial Projections - KKR projects fee-related earnings per share to exceed $4.50, indicating a CAGR of 20% from 2023 to 2026 [15] - Total operating earnings are anticipated to surpass $7 per share, with adjusted net income per share expected to be between $7 and $8, reflecting a CAGR of 30% [16] Balance Sheet and Liquidity - As of September 30, KKR had outstanding debt of $8.8 million, which is lower than its cash and investments totaling $16.3 million, indicating a strong liquidity position [17] - The company holds an 'A' rating from S&P and Fitch, suggesting a low likelihood of default on debt repayments [17] Shareholder Returns - KKR increased its dividend by 6% to 18 cents per share in March 2024, marking the fifth increase in five years with an annualized growth rate of 7.1% [18] - The company has a share repurchase program, with approximately $69 million remaining under the authorization as of October 2024 [19] Analyst Sentiment - Earnings estimates for KKR for 2024 and 2025 have been revised upward, indicating bullish sentiment among analysts [20] - The Zacks Consensus Estimate for KKR's 2024 earnings suggests a year-over-year growth of 37.7%, while 2025 earnings are expected to rise by 30% [23] Valuation Concerns - KKR's stock is currently trading at a forward 12-month price/earnings (P/E) ratio of 24.96, which is above the industry average of 18.57, indicating a potentially stretched valuation [25] - The stock is also trading at a premium compared to peers Apollo Global Management and Janus Henderson Group [25]

Core Viewpoint - KKR & Co. Inc. has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2][4]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to significant price movements based on their buying or selling actions [3]. Recent Performance of KKR & Co. - For the fiscal year ending December 2024, KKR is expected to earn $4.72 per share, reflecting a 38% increase from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for KKR has risen by 4.3%, indicating a positive trend in earnings estimates [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6][8]. - KKR's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].