Home Loan Servicing Solutions Earnings: Here’s Why Shares are Up Now

Home Loan Servicing Solutions (NASDAQ:HLSS) 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 1.11%.

Home Loan Servicing Solutions Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 45.45% to $0.48 in the quarter versus EPS of $0.33 in the year-earlier quarter.

Revenue: Rose 341.82% to $50.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Home Loan Servicing Solutions reported adjusted EPS income of $0.48 per share. By that measure, the company beat the mean analyst estimate of $0.46. It missed the average revenue estimate of $114.75 million.

Quoting Management: “We expect to see meaningful earnings accretion from the addition of the senior secured term loan to our capital structure in June,” said President and CEO John Van Vlack. “Earnings accretion from the term loan and the large asset purchase on July 1 supported the Board’s decision to increase our dividend to $0.15 per share per month for the third quarter of 2013.”

Key Stats (on next page)…

Revenue increased 12.02% from $45.08 million in the previous quarter. EPS increased 9.09% from $0.44 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.46 to a profit $0.49. For the current year, the average estimate has moved up from a profit of $1.82 to a profit of $1.88 over the last ninety days.

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