NEW YORK (TheStreet) -- Shares of KKR & Co. LP
(KKR) are down -2.13% to $24.78 on heavy trading volume after the investment firm said second quarter profit surged, the Wall Street Journal reports.
The company reported a second quarter profit of $178.2 million, or 43 cents a share, up from $15.1 million during the same time period a year ago.
They reported economic net income of $501.6 million, up from $144.4 million versus a year ago., 62 cents per after-tax-adjusted share.
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However, that still didn't beat Wall Street expectations for the profitability measure, which private-equity firms prefer because it includes unrealized gains in addition to cash earnings. Analysts polled by Thomson Reuters predicted 64 cents.
TheStreet Ratings team rates KKR & CO LP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate KKR & CO LP (KKR) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, increase in net income, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
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