KKR Real Estate Finance (KREF) came out with quarterly earnings of $0.47 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to his earnings per share of $0.50 a year ago. These figures have been adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 4.44%. A quarter ago, it was expected that this real estate finance company would post earnings of $0.28 per share when it actually produced earnings of $0.48, delivering a surprise of 71.43%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
KKR Real EstateThe company, which belongs to the Zacks REIT and Equity Trust industry, posted revenue of $44.61 million for the quarter ended September 2023, beating the Zacks Consensus Estimate by 5.24%. In comparison, last year’s revenue was $47.32 million. The company has surpassed consensus revenue estimates two times over the last four quarters.
The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s comments on the earnings call.
KKR Real Estate stock is down about 25.1% since the beginning of the year, while the S&P 500 is up 10%.
What’s next for KKR Real Estate?
KKR Real Estate has underperformed the market so far this year, but the question that comes to investors’ minds is: What’s next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Beyond this earnings release, KKR Real Estate’s estimate revision trends: Mixed. Although the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status corresponds to a Zacks Rank #3 (Hold) for the stock. Therefore, the stock is expected to trend in line with the market in the near future.You can view See the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the next few quarters and the current fiscal year change going forward. The current consensus EPS estimate is $0.22 on revenue of $41.18 million for the coming year and $1.86 on revenue of $174.07 million for the current year.
Investors should be mindful of the fact that the industry outlook can also have a significant impact on stock price performance. In terms of the Zacks Industry Rank, REITs & Equity Trusts currently ranks in the bottom 37% of the 250+ Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by more than 2 to 1.
Another stock in the same industry, Franklin BSP (FBRT), has not yet released its financial results for the quarter ending September 2023. Financial results are expected to be announced on October 30th.
The real estate investment trust is expected to post quarterly earnings of $0.42 per share in its upcoming report, which would represent a year-over-year change of +27.3%. The current quarter’s consensus EPS estimate has remained unchanged over the past 30 days.
Franklin BSP’s revenue is expected to increase 20.6% year-over-year to $60.66 million.
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KKR Real Estate Finance Trust (KREF): Free Stock Analysis Report
Franklin BSP Realty Trust, Inc. (FBRT): Free Stock Analysis Report
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