Lender Processing Services
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Lender Processing Services met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins increased, net margins grew.
Lender Processing Services booked revenue of $512.7 million. The eight analysts polled by S&P Capital IQ predicted sales of $514.4 million on the same basis. GAAP reported sales were 3.7% lower than the prior-year quarter's $532.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.71. The seven earnings estimates compiled by S&P Capital IQ forecast $0.71 per share. GAAP EPS of $0.68 for Q3 were 42% higher than the prior-year quarter's $0.48 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.7%, 370 basis points worse than the prior-year quarter. Operating margin was 21.9%, 500 basis points better than the prior-year quarter. Net margin was 11.4%, 380 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $498.4 million. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $2.05 billion. The average EPS estimate is $2.76.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 95 members out of 117 rating the stock outperform, and 22 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Lender Processing Services a green thumbs-up, and five 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 $27.43.
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