KKR & Co. Crushes Earnings Estimates

KKR & Co. Crushes Earnings Estimates
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KKR & Co. L.P. (NYSE:KKR) released its earnings numbers for the three months ended September 30 2013 this morning before the bell rang in New York. The company showed earnings per share of 84 cents in today’s release. Shares in the investment firm traded flat on Wednesday and finished the day at $22.91.
KKR & Co. Crushes Earnings Estimates

In the run up to the release of the KKR & Co. L.P. (NYSE:KKR) numbers, analysts following the company were looking for earnings per share of 55 cents from the firm, while revenue was expected to come in at $248 million. In the same three months of 2012 the investment house showed earnings of 69 cents on revenue totaling $162 million.

Assets under management at KKR ended the third quarter at $90.2 billion. Economic net income came in at $613.7 million, up from the 2012 figure of $509.9 million. KKR will pay a dividend of 23 cents per share to its shareholders for the third quarter.

KKR earnings

Earnings at KKR & Co. L.P. (NYSE:KKR) can be quite volatile because of the business that the company operates in. The firm’s Private Equity investments can take a great deal of time to pay off, so earnings numbers are not reliably compared to each other in different time periods.

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The state of the world economy is also an extremely important factor in deciding results, though great investors are supposed to be able to make returns in good or bad weather. KKR shareholders are facing a little bit of a pinch this year, but the company is expected to return to growth very soon.

KKR performance

This earnings report is the third that KKR & Co. L.P. (NYSE:KKR) has released this year, and it seems to keep the company on track to earn less than it did in 2013. The company’s fourth quarter and full year results will not arrive until next January, but analysts are expecting the company to show earnings per share of $2.10.

In 2012 KKR & Co. L.P. (NYSE:KKR) managed to earn $2.90 per share, though it was a bumper year for the firm. Investors are still optimistic about the company’s prospects despite the earnings contraction. Shares in KKR have increase by more than 50% since January 1. The company is trading at more than 14 times earnings.

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