Walter Investment Management Corp. (NYSE:WAC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
Walter Investment Management Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 666.13% to $4.75 in the quarter versus EPS of $0.62 in the year-earlier quarter.
Revenue: Rose 245.2% to $569.2 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Walter Investment Management Corp. reported adjusted EPS income of $4.75 per share. By that measure, the company beat the mean analyst estimate of $1.03. It beat the average revenue estimate of $374.77 million.
Quoting Management: “Walter Investment continues to execute solidly against its strategic plan, producing strong operational and financial results across our major segments in the second quarter,” said Mark J. O’Brien, Walter Investment’s Chairman and CEO. “Our core Servicing segment continued to deliver solid growth in profits and exceptional operational performance from both existing and recently acquired portfolios of new business. The Originations segment delivered robust production for the quarter generating significant earnings at strong margins, capitalizing on the HARP origination opportunities embedded in our portfolios.”
Key Stats (on next page)…
Revenue increased 95.06% from $291.81 million in the previous quarter. EPS increased 216.67% from $1.50 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 $1.34 to a profit $1.31. For the current year, the average estimate has moved up from a profit of $4.90 to a profit of $5.2 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)