Altisource Portfolio Solutions (NASDAQ:ASPS) Posts Quarterly Earnings Results, Misses Expectations By $0.03 EPS

Altisource Portfolio Solutions (NASDAQ:ASPS) announced its quarterly earnings data on Thursday. The business services provider reported $0.17 EPS for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.03), FiscalAI reports. Altisource Portfolio Solutions had a negative return on equity of 2.50% and a net margin of 3.61%.

Here are the key takeaways from Altisource Portfolio Solutions’ conference call:

• Second-quarter service revenue rose 19% year over year to $48.7 million, with growth in both the servicer/real estate and origination segments. Management said customer wins more than offset lost Rithm-related business, highlighting improving revenue diversification.
• Customer diversification improved materially, with revenue from customers other than Onity and Rithm rising to 65% of total service revenue from 46% a year ago. The company said this is its highest non-Onity/Rithm mix since going public.
• New business momentum remains strong, including $5.2 million in annualized stabilized wins in the servicer/real estate segment and $7.1 million in wins in origination during the quarter. Management also pointed to an $8.2 million weighted-average pipeline in servicer/real estate and a $20 million pipeline in origination.
• Hubzu inventory grew 30% sequentially to 22,300 assets, which management views as an important driver of future service revenue. They expect many of these assets to convert into revenue over the next several quarters.
• Adjusted EBITDA and margins declined quarter over quarter due mainly to a non-recurring prior-year benefit, higher growth-related costs, and origination investments, though the company expects roughly flat third-quarter EBITDA and higher fourth-quarter EBITDA. Management also said it used $6.6 million of operating cash largely because receivables rose with revenue growth, while unrestricted cash ended at $23.2 million.

Altisource Portfolio Solutions Trading Down 7.0%

Altisource Portfolio Solutions stock traded down $0.46 during mid-day trading on Thursday, hitting $6.10. The company’s stock had a trading volume of 18,108 shares, compared to its average volume of 25,705. The stock’s fifty day moving average is $6.69 and its two-hundred day moving average is $6.47. The firm has a market capitalization of $68.85 million, a PE ratio of 11.30 and a beta of 0.25. Altisource Portfolio Solutions has a 1 year low of $4.30 and a 1 year high of $14.36.

Institutional Trading of Altisource Portfolio Solutions

Hedge funds and other institutional investors have recently modified their holdings of the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC purchased a new stake in Altisource Portfolio Solutions in the 1st quarter valued at about $13,442,000. Vanguard Group Inc. increased its position in shares of Altisource Portfolio Solutions by 41.7% during the third quarter. Vanguard Group Inc. now owns 376,594 shares of the business services provider’s stock valued at $4,391,000 after acquiring an additional 110,888 shares during the last quarter. Millennium Management LLC acquired a new stake in shares of Altisource Portfolio Solutions during the third quarter valued at about $141,000. XTX Topco Ltd purchased a new stake in shares of Altisource Portfolio Solutions in the 3rd quarter valued at approximately $589,000. Finally, Jane Street Group LLC purchased a new stake in shares of Altisource Portfolio Solutions in the 4th quarter valued at approximately $75,000. 41.36% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several research analysts have recently weighed in on ASPS shares. B. Riley Financial started coverage on shares of Altisource Portfolio Solutions in a research report on Thursday, April 2nd. They set a “buy” rating and a $8.00 price target on the stock. Weiss Ratings upgraded shares of Altisource Portfolio Solutions from a “sell (d)” rating to a “sell (d+)” rating in a research report on Thursday, July 2nd. One investment analyst has rated the stock with a Strong Buy rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Altisource Portfolio Solutions has a consensus rating of “Moderate Buy” and an average price target of $8.00.

Altisource Portfolio Solutions Company Profile

Altisource Portfolio Solutions SA (NASDAQ: ASPS) is a provider of proprietary technology and specialized services to the mortgage and real estate industries. Founded in 2009, the company helps financial institutions, investors and loan servicers streamline processes across the full loan lifecycle, from origination and valuation through default management, asset disposition and investor reporting.

Core offerings include loan servicing and asset management solutions, property preservation and inspection services, valuation and due diligence, title and settlement services, as well as vendor management platforms.