KKR Real Estate Finance (KREF) reported quarterly earnings of $0.39 per share, beating the Zacks Consensus Estimate of $0.37 per share and comparing to earnings of $0.48 per share a year ago. These figures are adjusted to account for non-recurring items.
This quarterly report represents an earnings surprise of 5.41%. A quarter ago, it was expected that this real estate finance company would post earnings of $0.45 per share when it actually posted earnings of $0.47, delivering a surprise of 4.44%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
KKR Real Estate, which belongs to the Zacks REITs and Equity Trusts industry, posted revenues of $39.14 million for the fiscal year ending March 2024, missing the Zacks Consensus Estimate by 9.29% compared to revenues of $46.55 million in the same period a year ago. The company has surpassed consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's near-term price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
KKR Real Estate shares have fallen about 25.6% since the beginning of the year while the S&P 500 has gained 5.1%.
What's next for KKR Real Estate?
While KKR Real Estate has underperformed the market so far this year, 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, including current consensus earnings expectations for the coming quarter(s), as well as how these expectations have changed lately.
Empirical research shows a strong correlation between near-term share price movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-true rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, estimate revision trends for KKR Real Estate are mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status equates to a Zacks Rank #3 (Hold) for the stock, therefore, the stock is expected to remain in line with the market for the foreseeable future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the upcoming quarters and current fiscal year change over the next few days. The current consensus EPS estimates are $0.35 on revenues of $41.34 Million for the upcoming quarter and $1.38 on revenues of $164.85 Million for the current fiscal year.
The story continues
Investors should keep in mind that industry outlook can have a major impact on stock performance as well. In terms of the Zacks Industry Rank, REITs & Equity Trusts currently ranks in the bottom 38% of all 250+ Zacks industries. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1.
Granite Point Mortgage Trust (GPMT), another stock in the same industry, has yet to report its financial results for the fiscal year ending March 2024.
The real estate investment trust is expected to report quarterly earnings per share of $0.10 in its next report, which would represent a -50% change year-over-year. The consensus estimate for the quarterly EPS has been revised upward by 160% over the past 30 days to current levels.
Granite Point Mortgage Trust is expected to report revenue of $15.2 million, down 33.7% from the year-ago period.
Want the latest recommendations from Zacks Investment Research? Download today: 7 Best Stocks for the Next 30 Days Click to get this free report.
KKR Real Estate Finance Trust (KREF) : Free Stock Analysis Report
Granite Point Mortgage Trust Inc. (GPMT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research