KW Earnings Prediction
The chart below shows how KW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KW sees a +0.10% change in stock price 10 days leading up to the earnings, and a -0.96% change 10 days following the report. On the earnings day itself, the stock moves by -0.42%. This data can give you a slight idea of what to expect for the next quarter's release.
KW Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
127.50M
-9.77%
-3.41%
Gross Margin
69.41%
5.34%
-3.56%
Operating Margin
13.25%
-9.99%
-19.79%
Net Margin
-52.39%
15.50%
43.18%
EPS
-0.56
-15.15%
30.23%
No Data Available
KW Earnings Analysis
KENNEDY-WILSON HOLDINGS, INC. Corporation (KW.N) Earnings Conference Call
Positive
Assets Under Management Growth: 1. Growth in Assets Under Management: Assets under management increased to $28 billion, up from $25 billion at the end of 2023, reflecting a strong growth trajectory.
Investment Management Fee Surge: 2. Significant Increase in Investment Management Fees: Year-to-date investment management fees grew by 51% to $69 million, demonstrating robust performance in this segment.
Asset Sales Cash Generation: 3. Strong Cash Generation from Asset Sales: In Q3, the company disposed of $234 million in assets, generating $63 million in cash, contributing to a year-to-date total of $375 million in cash from asset sales.
Annual NOI Improvement: 4. Improved Estimated Annual NOI: Estimated annual NOI grew to $492 million, with an additional $29 million added from stabilizing approximately 2,000 multifamily units this year.
Loan Originations Success: 5. Successful Loan Originations: The company completed $2.1 billion in new loan originations in 2024, with a strong pipeline of over $1.2 billion in new loan opportunities.
Negative
NOI Growth Decline: 1. Declining NOI Growth: Despite an increase in estimated annual NOI to $492 million, the growth rate has slowed, with only a 3% increase in NOI for the quarter compared to previous periods.
Debt Maturity Concerns: 2. High Debt Maturities: The company faces significant debt maturities next year, with 25% of these related to its multifamily portfolio, raising concerns about refinancing amidst a challenging market.
Asset Sale Liquidity Concerns: 3. Limited Cash Generation from Asset Sales: Although $234 million in assets were disposed of in Q3, only $63 million in cash was generated, indicating a potential liquidity issue as the company aims for $550 million to $750 million in total asset sales.
Rising Operational Costs: 4. Increased Operating Costs: The company reported a 4% increase in baseline EBITDA year-to-date, but this is concerning given the backdrop of being a net seller of assets, suggesting rising operational costs may be outpacing revenue growth.
U.K. Market Challenges: 5. Weak Performance in U.K. Market: The new U.K. single-family rental housing platform is projected to yield only high-5% to 6% initially, which may not be sufficient to cover operational costs and achieve desired returns in a competitive market.
KW FAQs
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KW Earning Call Sentiment
Kennedy-Wilson Holdings, Inc. (KW) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
KW.N
4.36%Positive
The earnings call highlights strong financial performance, including record AUM, increased NOI, and robust investment management growth. Despite some concerns in the Q&A about originations and maturity cliffs, management's optimistic outlook and strategic actions like asset sales and bond redemption bolster confidence. The significant increase in fee-bearing capital and fixed debt position further supports a positive sentiment. Given the company's market cap, these factors suggest a stock price movement in the positive range of 2% to 8% over the next two weeks.
