Three months after releasing a 2Q earnings report that exceeded most expectations, KKR has repeated the trick for 3Q. The private equity behemoth generated economic net income of $598.2 million for the quarter, the equivalent of 71 cents per share, outpacing the consensus projection of 65 cents per share by industry analysts. That ENI figure represents a 212% increase QoQ and marks a distinct turnaround from 3Q 2015, when KKR reported a loss of nearly $315 million.
The firm said the “most significant” reason for the increase in gains was the increase in value of its private equity assets. For the quarter, KKR’s PE portfolio appreciated 5.8%, resulting in a year-to-date increase of 8.9% and an appreciation of 13% over the past 12 months. The firm’s stock experienced a resultant bump Tuesday, closing at $14.88 per share, a 2.8% increase over end-of-day Monday.