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KKR Reports Strong 1Q18 Results

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KKR’s 1Q18 EPS

KKR & Company (KKR) reported earnings for 1Q18 this morning. The company’s earnings per share or EPS stood at $0.42, beating expectations by $0.24. Starting July 1, 2018, the company is slated to no longer be a partnership but, rather, to be a corporation. This conversion could help market participants purchase KKR shares more easily and allow KKR to increase its investors.

Moreover, favorable momentum in the performance, coupled with conversion, would help KKR deliver equity value. The company’s management reflected positive views for the 1Q18 results. Though we’ve seen negative momentum in the global markets, the company witnessed favorable momentum in its businesses.

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KKR’s total segment revenues

KKR reported total segment revenues of $727.5 million in 1Q18, which reflects a substantial fall on a YoY basis. In 1Q17, total segment revenues amounted to $1,022.7 million. In 1Q18, the company’s total assets under management or AUM amounted to $176 billion, which implies an increase of 28% on a YoY basis. The company’s fee-generating assets under management amounted to $120 billion in 1Q18, which implies a 12% rise YoY.

KKR’s competitors’ (XLF) Apollo Global Management (APO), Carlyle Group (CG), and Blackstone Group (BX) reported EPS of -$0.30, $0.47 and $0.65, respectively, in their March 2018 quarters. KKR’s book value per unit rose 14% on a last-twelve-month basis.

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