The Classy Investors

  /  Stock   /  KKR beats estimates with flat second-quarter earnings

KKR beats estimates with flat second-quarter earnings

imageStock Markets4 hours ago (Aug 04, 2020 08:30AM ET)

(C) Reuters. FILE PHOTO: Trading information for KKR & Co is displayed on a screen on the floor of the NYSE in New York

By Chibuike Oguh

(Reuters) – U.S. private equity firm KKR & Co Inc (N:KKR) said on Tuesday that its second-quarter distributable earnings were flat year-on-year, beating many analysts’ expectations amid a rise in management and performance fees.

KKR said after-tax distributable earnings (DE) of $326 million was in line with the $327 million posted a year earlier. This translated to after-tax DE per share of 39 cents, which was greater than the 36 cents that Wall Street analysts estimated on average, according to Refinitiv.

Following similar announcements by its peers, KKR said the value of its funds rebounded alongside the recovery of financial markets from a slump caused by the spread of the coronavirus, allowing investment income to rise 37% to $1.58 billion.

KKR’s private equity funds rose 11% in the second quarter, while global infrastructure and real estate funds rose 7% and 2% respectively. Its leverage credit funds rose 11%.

Last month, Blackstone Group Inc (N:BX) said its private equity portfolio rose 12.8% in the second quarter, while Carlyle Group Inc (O:CG) and Apollo Global Management Inc (N:APO) reported that their private equity funds grew 13% and 11.7% respectively.

Under generally accepted accounting principles (GAAP), KKR said its net income rose 36% year-on-year to $698.6 million in the second quarter owing to the appreciation of its funds.

The New York-based firm said its performance fee income rose 52% to $355.4 million, as it completed asset sales including the 2.8 billion euros ($3.03 billion) divestment of German fiber-optic network company Deutsche Glasfaser to private equity firm EQT (NYSE:EQT) and Canadian pension fund OMERS.

KKR said its total asset management was $222 billion, up from $207.1 billion as of the end of March, driven by strong fundraising in its flagship funds. The firm declared its regular quarterly dividend of 0.135 cents per share.

(This story corrects average estimate to 36 cents from 33 cents)

KKR beats estimates with flat second-quarter earnings

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.