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 -1.45% 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
135.50M
-4.98%
6.27%
Gross Margin
72.84%
11.44%
4.94%
Operating Margin
5.54%
-36.32%
-58.19%
Net Margin
32.25%
119.49%
-161.56%
EPS
0.24
113.48%
-142.86%
No Data Available
KW Earnings Analysis
Kennedy-Wilson Holdings Inc Corporation (KW.N) Earnings Conference Call
Positive
Adjusted EBITDA Surge: Strong increase in adjusted EBITDA, nearly tripling from $190 million in 2023 to $540 million in 2024.
Investment Management Fee Growth: Investment management fees grew by 60% year-over-year to approximately $100 million in 2024, a significant milestone for the company.
Capital Deployment Increase: Over $4 billion of capital deployed in 2024, including $3.5 billion in debt originations and $800 million in acquisitions, marking a 50% increase from 2023.
Fundraising Success for Investments: Successfully closed fundraising on the seventh discretionary commingled fund, securing $400 million in discretionary capital for U.S. investments.
Asset Sale Proceeds: Generated $122 million in cash proceeds from non-core asset sales in Q4, achieving the $550 million asset sale target set for the year.
Debt Repayment Strategy: Repayment of $185 million of KWE bonds and $78 million on the revolving credit facility, reducing unsecured debt significantly.
Real Estate Investment Overview: Real estate equity and credit investments total $28 billion in assets under management, producing an estimated annual NOI of $467 million.
Same-Property NOI Growth: Same-property NOI grew by 5.6% in Q4, with occupancy rates improving to 95%.
Vintage Housing NOI Growth: Strong performance in the Vintage Housing affordable portfolio, generating a 10.5% growth in NOI.
High Occupancy Rate: The Irish apartment portfolio ended the quarter at a strong 97% occupancy, with ongoing demand and structural undersupply in the Dublin market.
Negative
Earnings Performance Volatility: The company reported a GAAP EPS of $0.24 for Q4, which, while an improvement from a loss of $1.78 in Q4 2023, still indicates volatility in earnings performance.
EBITDA Growth Challenges: Despite a significant increase in adjusted EBITDA to $191 million in Q4, the company faced challenges in maintaining consistent profitability across all quarters.
Debt Obligation Impact: The company has a remaining €300 million in KWE bonds maturing in 2025, which represents a significant debt obligation that could impact future cash flow and financial stability.
European Office Portfolio Challenges: The company’s office portfolio, which generates approximately 80% of its estimated annual NOI from European investments, is still facing challenges with only 2% same-property NOI growth in 2024, indicating potential weaknesses in this segment.
Debt Maturity Risks: The company has a significant amount of debt maturing in 2025, including $535 million of secured debt, which could pose refinancing risks in a potentially volatile interest rate environment.
Unsecured Debt Risk: While the company has made strides in reducing unsecured debt, the remaining unsecured maturity until 2028 still poses a risk to financial flexibility and could impact future capital deployment strategies.
KW FAQs
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KW Earning Call Sentiment
Kennedy-Wilson Holdings, Inc. (KW) Q4 2024 Earnings Call Transcript
KW.N
0.82%Positive
The earnings call presented strong financial metrics, including a significant increase in EBITDA and GAAP EPS. Additionally, debt repayment and high occupancy rates indicate financial health. The Q&A revealed optimism about future growth, despite some uncertainties around rent caps and market demand. The positive aspects outweigh concerns, suggesting a likely positive stock movement.
