Altisource Portfolio Solutions Earnings: Here’s Why Investors Like These Results

Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 7.24%.

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Altisource Portfolio Solutions S.A. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 7.84% to $1.10 in the quarter versus EPS of $1.02 in the year-earlier quarter.

Revenue: Rose 7.27% to $148.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Altisource Portfolio Solutions S.A. reported adjusted EPS income of $1.10 per share. By that measure, the company beat the mean analyst estimate of $1.08. It missed the average revenue estimate of $166.2 million.

Quoting Management: William Shepro, Chief Executive Officer, commented, “We are very pleased with our first quarter results particularly given that our Mortgage Services segment is almost fully staffed to support the near doubling of the non-GSE loans on REALServicing by the fourth quarter of 2013. We accomplished our results with only modest benefit from the Homeward servicing portfolio and no benefit from the ResCap and Ally servicing portfolios. This bolsters our confidence that our default businesses’ operating margins will increase by approximately seven percentage points by year-end 2013, even after amortizing the intangible assets associated with the Homeward and ResCap transactions.”

Key Stats (on next page)…

Revenue increased 5.92% from $140.49 million in the previous quarter. EPS decreased 8.33% from $1.20 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.70 to a profit $1.56. For the current year, the average estimate has moved down from a profit of $7.11 to a profit of $6.71 over the last ninety days.

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

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