KKR Financial Holdings Earnings: Everything You Must Know Now

KKR Financial Holdings LLC (NYSE:KFN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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KKR Financial Holdings LLC Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 4.55% to $0.46 in the quarter versus EPS of $0.44 in the year-earlier quarter.

Revenue: Decreased 35.35% to $140.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: KKR Financial Holdings LLC reported adjusted EPS income of $0.46 per share. By that measure, the company beat the mean analyst estimate of $0. It beat the average revenue estimate of $51.66 million.

Quoting Management: “Many markets had a strong start to the year, and we took advantage of this in several ways,” said William C. Sonneborn, CEO of KFN. “First, we exited certain investments by selling into the exuberance for risk assets, in particular in our mezzanine strategy. Second, we pivoted our focus to areas of capital supply/demand imbalance, for example in commercial real estate, where we deployed or committed to deploy capital to four new opportunities during the quarter. Finally, we maintained our discipline around capital deployment by treading cautiously in the current high-price, tight-spread environment, evidenced by our $713 million cash position at quarter end.”

Key Stats (on next page)…

Revenue increased 40.22% from $100.2 million in the previous quarter. EPS decreased 23.33% from $0.60 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is $0 and has not changed. For the current year, the average estimate has moved down from a profit of $2.21 to $0 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)