Nationstar Mortgage Holdings Earnings: Back in the Black

S&P 500 (NYSE:SPY) component Nationstar Mortgage Holdings Inc. (NYSE:NSM) reported its results for the third quarter.

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Nationstar Mortgage Holdings Inc. Earnings Cheat Sheet

Results: Reported a profit of $55.1 million (61 cents per diluted share) in the quarter. Nationstar Mortgage Holdings Inc. had a net loss of $3.1 million or a loss 4 cents per share in the year-earlier quarter.

Revenue: Rose more than threefold to $277.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Nationstar Mortgage Holdings Inc. fell short of the mean analyst estimate of 63 cents per share. It fell short of the average revenue estimate of $373.3 million.

Quoting Management: “We generated record net income in the quarter, and we remain focused on three major strategic goals,” said Jay Bray, Chief Executive Officer of Nationstar. “First, we are committed to executing on our servicing acquisition pipeline of $600 plus billion, and we are pleased to announce that we expect $30 billion of acquisitions to close in the fourth quarter. We also executed flow agreements representing $10 billion in annual UPB, and we are targeting $25 to $50 billion of annual flow. Second, we see a significant opportunity to organically grow servicing by continued focus on recapture and expansion of our builder, wholesale, and other origination channels. Finally, we are implementing a strategic initiative to generate additional shareholder value by expanding our ancillary offering of end-to-end solutions for originations and default services.”

Key Stats:

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the second quarter, it topped the mark by 13 cents, and in the first quarter, it was ahead by 47 cents.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 67 cents per share, up from 56 cents ninety days ago. Over the past three months, the average estimate for the fiscal year has climbed from $2.06 per to share to $2.42.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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