U.S. investment firm Kohlberg Kravis Roberts & Co. (KKR) has reported a 58% increase in its quarterly earnings due to strength in its capital markets business.
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KKR, as the company is known, reported that its earnings per share (EPS) rose 58% year-over-year to $1.38 in the third quarter. That topped the $1.20 consensus expectation on Wall Street. Revenue in the quarter totaled $4.79 billion, which was up 44% from $3.32 billion last year.
KKR, which is one of the world’s biggest private equity firms, also reported that its fee-related earnings rose 79% to a record $1 billion in the quarter, driven by a spike in management fees it collected. Assets under management at KKR rose 18% from a year earlier to $624 billion.
Strong Capital Markets Performance
Management attributed the results to a strong showing by its capital markets unit that brought in $424 million during Q3. Total investing earnings, or income from selling assets, rose 7% to $318.4 million. KKR said it raised $24 billion of new capital during the quarter, up 71% from $14 billion in the same quarter of 2023.
KKR announced several deals in the July through September period, including the purchase of privately held Varsity Brands, a maker of sports uniforms, for $4.75 billion. The stock of KKR rose 4% immediately following its Q3 financial results being made public. The company’s share price has now risen 75% this year and is trading at an all-time high.
Is KKR Stock a Buy?
KKR stock has a consensus Strong Buy rating among 16 Wall Street analysts. That rating is based on 14 Buy and two Hold recommendations assigned in the last three months. The average KKR price target of $146.80 implies 1.63% upside from current levels.
