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What: Shares of Lender Processing Services (NYSE:LPS), a technology and outsourced service provider to the mortgage industry, fell as much as 14% after releasing its third-quarter results on Monday.
So what: For the quarter, Lender Processing Services reported a profit of $0.71 on a 1% decrease in revenue to $512.7 million. EPS estimates met Wall Street's expectations; however, revenue fell shy of the consensus $514.4 million. Growth in its technology segment was robust, advancing 11.2%, while revenue for the transactions segment demonstrated serious weakness, dipping 7.9%.
Now what: On top of a lackluster earnings report, Lender Processing Services is continuing to settle with states on an individual basis over the ongoing robo-signing foreclosure scandal. With the aftermath of Hurricane Sandy now thrown into the mix and perhaps a third of the country about to see a major decline in new home sales, Lender Processing Services doesn't appear to have a bright outlook over the near term, and it's not a company I'd consider venturing near.
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Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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