KKR Earnings: Falls Short of Analyst Revenue Estimate

Kohlberg Kravis Roberts & Co. (NYSE:KKR) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.56%.

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Kohlberg Kravis Roberts & Co. Earnings Cheat Sheet

Results: Net income increased 109.64% to $96.728 million (48 cents per diluted share on an adjusted basis) in the quarter versus a net gain of $46.14 million in the year-earlier quarter.

Revenue: Decreased 80.79% to $177.621 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kohlberg Kravis Roberts & Co. reported adjusted net income of 48 cents per share. By that measure, the company beat the mean analyst estimate of $0.25. It missed the average revenue estimate of $216.75 million.

Quoting Management: “Our private equity portfolio and our balance sheet both appreciated 24% in 2012, outperforming the S&P 500 and MSCI World indices by over 700 basis points,” said Henry R. Kravis and George R. Roberts, Co-Chairmen and Co-Chief Executive Officers of KKR. “In addition, in 2012 we completed transactions which returned over $9 billion to all investors in our private equity funds and co-investment vehicles, the highest figure in our 36-year history, and contributed to a record annual distribution of $1.22 per common unit. We are pleased with our results.”

Key Stats (on next page)…

Revenue increased 9.54% from $162.15 million in the previous quarter. Net income decreased 24.08% from $127.41 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.57 to a profit $0.56. For the current year, the average estimate has moved down from a profit of $2.85 to a profit of $2.66 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)