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What: Shares of asset-management firm Altisource Portfolio Manager (NASDAQ:ASPS) jumped as much as 11% today, after the company topped estimates in its earnings report.
So what: Earnings per share increased 18% to $1.20 in the quarter, beating analyst expectations of $1.09, while service revenue also showed a strong increase, growing 39% to $466.9 million. CEO William Shepro called 2012 a "very strong year for Altisource," noting that the company succeeded in "providing high quality services to our largest customer, Ocwen Financial Corporation (NYSE:OCN), while intensifying our efforts on our strategic initiatives to diversify and expand our revenue base." Altisource did not give specific numbers in its outlook, but expressed optimism based on Ocwen's growth.
Now what: As long as the partnership with Ocwen holds up, Altisource should continue to grow as Ocwen shares have gone up by nearly 200% in the last year. Analysts are expecting EPS to grow 66% to $7.11, and the top line to jump of 59%. If Altisource can sustain a growth rate anywhere near that in 2014, shares should keep moving higher.
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