Ocwen Financial Earnings: Here’s Why the Stock is Down Now
Ocwen Financial Corp. (NYSE:OCN) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.19%.
Ocwen Financial Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 24% to $0.31 in the quarter versus EPS of $0.25 in the year-earlier quarter.
Revenue: Rose 125.06% to $376.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Ocwen Financial Corp. reported adjusted EPS income of $0.31 per share. By that measure, the company missed the mean analyst estimate of $0.75. It beat the average revenue estimate of $360.2 million.
Quoting Management: “The Company’s string of record quarterly revenues will continue into the second quarter as we benefit from a full quarter of ResCap revenue and our recent acquisition of Ally Bank’s mortgage servicing rights,” commented Bill Erbey, Ocwen’s Chairman. “Ocwen’s core earnings and cash-flow were strong in the first quarter, and we should see these trend higher as a percentage of revenue as we drive down costs and delinquencies on newly acquired business. Ocwen’s lower funding costs and improving pre-pay speeds on non-prime loans should also support better performance versus our original expectations.”
Key Stats (on next page)…
Revenue increased 63.66% from $229.81 million in the previous quarter. EPS decreased 39.22% from $0.51 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 $1.13 to a profit $1.18. For the current year, the average estimate has moved up from a profit of $4.46 to a profit of $4.64 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)