Private equity giant KKR (KKR) gave its first earnings announcement since it began trading on the New York Stock Exchange (NYX) last month. Net income for the quarter was 15 cents per share, and the company declared a quarterly dividend of 8 cents, for an annualized yield of a little over 3%.
But more interestingly, KKR pulled its previously announced 500 million dollar offering, which had been weighing on the shares since its announcement, as investors prepared for dilution. The move echos May's announcement by KKR Financial Holdings (KFN), a specialty finance company managed by KKR, when it announced the withdrawal of an offering citing unfavorable market conditions and noting it would not in the best interests of shareholders to issue new stock at low levels.
In its earnings report KKR also announced that Fitch gave the company an ''A'' rating, while Standard & Poor's assigned an ''A-'' rating. In each case the rating companies assigned a stable outlook. In Tuesday morning trading, shares of KKR were bucking the trend of the overall market, trading roughly flat on the day versus the SPDR S&P 500 ETF (SPY) which was down about 1.2% on the day.
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