KKR Real Estate Finance (KREF) reported $35.13 million in revenue for the quarter ended December 2024, representing a year-over-year decline of 24.4%. EPS of $0.31 for the same period compares to $0.47 a year ago.
The reported revenue represents a surprise of -3.62% over the Zacks Consensus Estimate of $36.46 million. With the consensus EPS estimate being $0.30, the EPS surprise was +3.33%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how KKR Real Estate performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Total net interest income: $35.13 million versus $36.46 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -24.4% change.
- Total other income: $4.66 million compared to the $5.93 million average estimate based on two analysts. The reported number represents a change of +11.6% year over year.
- Total other income- Other income: $1.19 million versus $1.50 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -6.7% change.
- Total other income- Income (loss) from equity method investments: -$0.10 million versus the two-analyst average estimate of $0.58 million. The reported number represents a year-over-year change of -127%.
- Total other income- Revenue from real estate owned operations: $3.56 million compared to the $3.90 million average estimate based on two analysts. The reported number represents a change of +41.4% year over year.
Shares of KKR Real Estate have returned -3.9% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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