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)…