The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ocwen Financial beat slightly on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share contracted.
Margins dropped across the board.
Ocwen Financial reported revenue of $156.6 million. The three analysts polled by S&P Capital IQ foresaw a top line of $154.5 million on the same basis. GAAP reported sales were 38% higher than the prior-year quarter's $113.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.23. The four earnings estimates compiled by S&P Capital IQ forecast $0.30 per share on the same basis. GAAP EPS of $0.08 for Q4 were 11% lower than the prior-year quarter's $0.09 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 97.7%, 40 basis points worse than the prior-year quarter. Operating margin was 58.0%, 2,120 basis points worse than the prior-year quarter. Net margin was 6.2%, 260 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $164.8 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $759.8 million. The average EPS estimate is $1.71.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ocwen Financial is outperform, with an average price target of $16.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.