KKR (NYSE:KKR) shares are trending higher today following the release of the global investment giant’s third-quarter results, with EPS of $0.88 outperforming expectations by $0.05.
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During the quarter, total revenue increased to $3.31 billion, up from $1.86 billion in the year-ago period. While revenue in the Insurance vertical declined to $1.65 billion from $1.75 billion a year ago, the Asset Management vertical experienced a marked revenue increase, reaching $1.66 billion compared to $101 million a year ago. Consequently, net income attributable to KKR shareholders jumped to $1.47 billion, up from $32.6 million a year ago.
Despite a challenging macroeconomic environment, the company’s fee-related earnings (FRE) increased by 3% to $558 million and assets under management (AUM) ticked higher by 6% to $528 billion. Moreover, the company raised $14 billion in new capital during the quarter.
KKR’s book value per share also rose by 10% year-over-year to $29.68, and its total cash pile remained at a healthy $28 billion at the end of the quarter. Further, the company declared a quarterly dividend of $0.165 per share. The KKR dividend is payable on December 1 to investors of record on November 17.
What is the Future of KKR Stock?
Overall, the Street has a Strong Buy consensus rating on KKR. The average KKR price target of $74.43 implies a substantial 25.35% potential upside.
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