Walter Investment Management Earnings: Here’s Why Investors Like These Results

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. Shares are up 4.51%.

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Walter Investment Management Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $0.71 in the quarter as EPS of $0.71 in the year-earlier quarter.

Revenue: Rose 71.12% to $291.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Walter Investment Management Corp. reported adjusted EPS income of $0.71 per share. By that measure, the company beat the mean analyst estimate of $0.47. It beat the average revenue estimate of $262.77 million.

Quoting Management: “Walter Investment produced strong first quarter financial and operating results, while effectively managing the recent significant growth of our Company,” said Mark J. O’Brien, Walter Investment’s Chairman and CEO. “Our servicing group absorbed a significant volume of boardings from the ResCap and BofA portfolio acquisitions, which are performing at or ahead of expectations. The Originations segment has ramped up significantly as it executes on our recapture strategies, and it is expected to remain on its steep growth trajectory, as the consumer direct channel hits its stride and the retail and correspondent channels develop. The reverse mortgage business delivered a record quarter with the addition of the Security One Lending acquisition.”

Key Stats (on next page)…

Revenue increased 60.15% from $182.2 million in the previous quarter. EPS increased 10.94% from $0.64 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 $1.49 to a profit $1.19. For the current year, the average estimate has moved down from a profit of $6.13 to a profit of $4.65 over the last ninety days.

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

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