KKR & Co. (KKR) Down 10.2% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for KKR & Co. Inc. (KKR). Shares have lost about 10.2% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is KKR & Co. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.KKR & Co. Q1 Earnings Beat Estimates, AUM Rises Y/YKKR & Co. reported first-quarter 2026 net income per share of $1.39, surpassing the Zacks Consensus Estimate of $1.28. The bottom line rose from $1.15 in the prior-year quarter.Results have primarily reflected impressive growth in assets under management and transaction fees for the capital markets business. However, an increase in expenses acted as a headwind.Net income attributable to the company (GAAP basis) was $364.8 million against a net loss of $185.9 million in the year-ago quarter.Segmental Revenues & Expenses IncreaseTotal segment revenues amounted to $1.47 billion, increasing 22.4% on a year-over-year basis. The top line surpassed the Zacks Consensus Estimate of $1.43 billion.Total segment expenses increased 19.9% year over year to $452.6 million.As of March 31, 2026, total AUM grew 14.1% year over year to $757.9 billion.Fee-paying AUM summed $614.8 billion, which increased 16.8% from the year-ago quarter.Total Operating Earnings & Fee-Related Earnings RiseTotal operating earnings grew 19.1% year over year to $1.3 billion.The company posted fee-related earnings of $1 billion, up 23.5% year over year.Capital Distribution UpdateThe company declared a quarterly dividend of 19.5 cents per share of common stock, representing a 5.4% increase from the previous quarterly dividend of 18.5 cents per share. This dividend will be paid on May 29, 2026, to shareholders of record as of the close of business on May 15, 2026.The company also approved a $500 million increase to its existing share repurchase program, with the authorization set to automatically increase once the remaining capacity falls to $50 million or less.2026 OutlookManagement expects fee-related earnings per share of more than $4.50.Total operating earnings per share are projected to be more than $7.Adjusted net income per share is anticipated to be below $7 (previous guidance was $7-$8). How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.The consensus estimate has shifted -7.56% due to these changes.VGM ScoresCurrently, KKR & Co. has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise KKR & Co. has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.Performance of an Industry PlayerKKR & Co. belongs to the Zacks Financial - Investment Management industry. Another stock from the same industry, Affiliated Managers Group (AMG), has gained 1.8% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.Affiliated Managers reported revenues of $544.9 million in the last reported quarter, representing a year-over-year change of +9.7%. EPS of $8.23 for the same period compares with $5.20 a year ago.Affiliated Managers is expected to post earnings of $7.58 per share for the current quarter, representing a year-over-year change of +40.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.8%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Affiliated Managers. Also, the stock has a VGM Score of A.Beyond Nvidia: AI's Second Wave Is HereThe 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.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks