PHH Corporation (NYSE:PHH) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
PHH Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 84.09% to $0.21 in the quarter versus EPS of $1.32 in the year-earlier quarter.
Revenue: Decreased 12.26% to $730 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: PHH Corporation reported adjusted EPS income of $0.21 per share. By that measure, the company missed the mean analyst estimate of $0.46. It missed the average revenue estimate of $772.6 million.
Quoting Management: Glen A. Messina, president and CEO of PHH Corporation, said, “Our financial performance in the first quarter was consistent with our expectations for the business relative to interest rate movements and with the framework we previously discussed. We believe we are appropriately positioned in our mortgage business for a rising interest rate environment by being in both origination and servicing. We intend to scale our mortgage production costs to be consistent with expected volumes, our commitment to high customer service levels, and the rapidly-changing regulatory environment. Meanwhile, our Fleet business continued to provide consistency in segment profit and cash flows.”
Key Stats (on next page)…
Revenue decreased 12.36% from $833 million in the previous quarter. EPS decreased 79.21% from $1.01 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 $0.76 to a profit $0.59. For the current year, the average estimate has moved down from a profit of $2.90 to a profit of $2.09 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)