Lender Processing Services
The 10-second takeaway
For the quarter ended March 31 (Q1), Lender Processing Services met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped.
Margins dropped across the board.
Revenue details
Lender Processing Services booked revenue of $506.0 million. The eight analysts polled by S&P Capital IQ expected to see sales of $502.0 million on the same basis. GAAP reported sales were 5.8% lower than the prior-year quarter's $537.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.59. The eight earnings estimates compiled by S&P Capital IQ forecast $0.57 per share. GAAP EPS of $0.56 for Q1 were 11% lower than the prior-year quarter's $0.63 per share. (The prior-year quarter included -$0.04 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 23.4%, 500 basis points worse than the prior-year quarter. Operating margin was 18.6%, 550 basis points worse than the prior-year quarter. Net margin was 9.3%, 110 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $504.7 million. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $2.01 billion. The average EPS estimate is $2.38.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 92 members out of 119 rating the stock outperform, and 27 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Lender Processing Services a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lender Processing Services is hold, with an average price target of $22.57.
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