KKR & Co. Inc. (KKR Quick QuoteKKR - Free Report) is slated to report third-quarter 2024 results on Oct. 24, before the opening bell. Its earnings and revenues in the quarter are expected to have increased on a year-over-year basis.

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In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate. Results benefited from growth in the assets under management (AUM) balance and decline in expenses.

The company boasts an impressive earnings surprise history. Its earnings surpassed the consensus estimate in the trailing four quarters, the average beat being 5.19%.

KKR & Co. Inc. Price and EPS Surprise

KKR & Co. Inc. price-eps-surprise | KKR & Co. Inc. Quote

The Zacks Consensus Estimate for KKR’s third-quarter earnings is pegged at $1.20 per share, which has been unchanged over the past seven days. The figure indicates a jump of 36.4% from the year-ago quarter’s reported number.

The consensus estimate for sales is pegged at $1.23 billion, indicating 37.8% year-over-year growth.

Key Factors & Estimates for KKR in Q3

KKR has been witnessing increased fee-earning AUM and total AUM, driven by a diversified product and revenue mix, a superior position in the alternative investments space, and net inflows. Given the solid market performance in the third quarter, the company is expected to have recorded an increase in the AUM balance, supported by overall asset inflows.

The Zacks Consensus Estimate for AUM is pegged at $620.4 billion, suggesting a rise of 3.2% from the prior quarter’s reported number. Likewise, the consensus estimate for fee-paying AUM of $505.9 billion indicates an increase of 3.8% on a sequential basis.

The Zacks Consensus Estimate for management fees (segment revenues) for the to-be-reported quarter is pegged at $885.9 million, which indicates 4.6% growth from the prior quarter’s reported level.

The consensus estimate for fee-related Transaction and Monitoring revenues (segment revenues) of $275.1 million suggests a sequential rise of 23.5%.

The consensus estimate for fee-related Performance revenues (segment revenues) of $33.27 million implies a sequential rise of 10.4%.

Talking about expenses, KKR is likely to have experienced elevated expenses in the to-be-reported quarter due to higher employee compensation and benefits, along with increased investment in technological development to align with changing customer needs.

What Our Model Predicts for KKR

Our quantitative model does not conclusively predict an earnings beat for KKR this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for KKR is -0.07%.

Zacks Rank: The company currently carries a Zacks Rank #3.

KKR Peers Worth a Look

Here are a couple of asset managers that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:

AllianceBernstein (AB Quick QuoteAB - Free Report) is scheduled to release third-quarter 2024 earnings on Oct. 24. The company, which sports a Zacks Rank #1 at present, has an Earnings ESP of +2.74%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AB’s quarterly earnings estimates have been unchanged at 73 cents over the past month.

Hamilton Lane (HLNE Quick QuoteHLNE - Free Report) is scheduled to release first-quarter fiscal 2025 earnings on Nov. 6. The company, which flaunts a Zacks Rank #1 at present, has an

Earnings ESP of +0.63%. HLNE’s quarterly earnings estimates have been unchanged at $1.06 over the past week.