Altisource Portfolio Solutions Earnings: Here’s Why Investors Like These Results
Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 7.24%.
Altisource Portfolio Solutions S.A. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 7.84% to $1.10 in the quarter versus EPS of $1.02 in the year-earlier quarter.
Revenue: Rose 7.27% to $148.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Altisource Portfolio Solutions S.A. reported adjusted EPS income of $1.10 per share. By that measure, the company beat the mean analyst estimate of $1.08. It missed the average revenue estimate of $166.2 million.
Quoting Management: William Shepro, Chief Executive Officer, commented, “We are very pleased with our first quarter results particularly given that our Mortgage Services segment is almost fully staffed to support the near doubling of the non-GSE loans on REALServicing by the fourth quarter of 2013. We accomplished our results with only modest benefit from the Homeward servicing portfolio and no benefit from the ResCap and Ally servicing portfolios. This bolsters our confidence that our default businesses’ operating margins will increase by approximately seven percentage points by year-end 2013, even after amortizing the intangible assets associated with the Homeward and ResCap transactions.”
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