KKR & Co. (KKR) Reports Q2 Earnings: What Key Metrics Have to Say

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how KKR & Co. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Assets Under Management - New Capital Raised: $34.33 billion versus $28.97 billion estimated by three analysts on average.
• Private Equity - Assets Under Management: $254.74 billion compared to the $237.25 billion average estimate based on three analysts.
• Fee Paying Assets Under Management: $638.4 billion compared to the $636.45 billion average estimate based on three analysts.
• Real Assets Segment- Ending AUM - Fee-paying AUM: $175.3 billion compared to the $174.18 billion average estimate based on three analysts.
• Fee Related Earnings- Management Fees: $1.25 billion versus $1.17 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +25.5% change.
• Credit and Liquid Strategies- Ending AUM - Fee-paying AUM: $294.97 billion versus $301.17 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.5% change.
• Revenues- Fee Related Earnings: $1.21 billion versus $1.06 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +36.9% change.
• Private Equity- Management Fees: $491.26 million versus $444.28 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +32% change.
• Net Transaction and Monitoring Fees: $221.27 million versus the three-analyst average estimate of $251.19 million. The reported number represents a year-over-year change of -5.5%.
• Credit and Liquid Strategies- Segment-AUM- end of period: $330.83 billion versus the three-analyst average estimate of $338.48 billion. The reported number represents a year-over-year change of +13.4%.
• Credit and Liquid Strategies- Realized Performance Income: $16.8 million compared to the $114.92 million average estimate based on three analysts. The reported number represents a change of -53.3% year over year.
• Credit and Liquid Strategies- Total Fee Related Revenue: $348.62 million compared to the $381.86 million average estimate based on three analysts. The reported number represents a change of +3.8% year over year.

View all Key Company Metrics for KKR & Co. here>>>

Shares of KKR & Co. have returned +7.3% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research