KKR Financial Holdings LLC Earnings: Here’s Why Investors are Happy 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. Shares are up 1.82%.

KKR Financial Holdings LLC Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 11.36% to $0.39 in the quarter versus EPS of $0.44 in the year-earlier quarter.

Revenue: Decreased 14.26% to $137.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: KKR Financial Holdings LLC reported adjusted EPS income of $0.39 per share. By that measure, the company beat the mean analyst estimate of $0.36. It beat the average revenue estimate of $51.66 million.

Quoting Management: “Market volatility during the second quarter provided us with an attractive window to deploy some of our sizable cash balance. For example, we took the opportunity to issue a new CLO, capitalizing on a less crowded market to accumulate a more favorably priced loan portfolio than was possible in the first quarter,” said William C. Sonneborn, CEO of KFN.

Key Stats (on next page)…

Revenue decreased 30.17% from $196.49 million in the previous quarter. EPS decreased 35% from $0.60 in the previous quarter.

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