By KKR & Co Inc. (NYSE: KKR) experienced a significant surge in its stock price on Tuesday, gaining 3% despite the broader weakness in the stock market. The private-equity firm and alternatives investment manager exceeded analyst expectations with its impressive third-quarter profit.
Robust Financial Performance
KKR reported a substantial increase in net income for the third quarter, reaching $1.47 billion, or $1.64 per share. This represents a significant jump from $32.6 million, or 4 cents per share, in the same period last year. Additionally, the company’s revenue climbed to $3.32 billion, up from $1.86 billion previously.
Exceeding Expectations
Adjusted after-tax distributable earnings stood at 88 cents per share, surpassing the FactSet consensus estimate of 83 cents per share. Although total asset management segment revenue decreased to $1.46 billion from the previous year’s figure of $1.67 billion, it still managed to beat the analyst estimate of $1.43 billion.
Steady Growth in Assets Under Management
KKR reported a 6% increase in total assets under management, which now stands at a remarkable $528 billion. This growth can be attributed to the company’s ability to generate $14 billion in new capital during the quarter, surpassing the $13 billion raised in the same quarter last year. Over the past 12 months, KKR has successfully raised $54 billion in fresh capital, although this was slightly lower than the $84 billion raised in the preceding 12 months.
In conclusion, KKR & Co Inc.’s robust financial performance in the third quarter has driven a surge in its stock price, demonstrating investor confidence in the firm’s ability to exceed expectations and sustain steady growth in assets under management.
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