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

Altisource Portfolio Solutions (NASDAQ:ASPS) announced its earnings results on Thursday. The business services provider reported $0.17 earnings per share for the quarter, missing the consensus estimate 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%.The business had revenue of $50.66 million for the quarter, compared to analysts’ expectations of $42.90 million.

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 Price Performance

Shares of ASPS stock opened at $5.80 on Friday. The firm has a market capitalization of $65.42 million, a price-to-earnings ratio of 10.74 and a beta of 0.25. The business has a fifty day moving average of $6.67 and a 200 day moving average of $6.46. Altisource Portfolio Solutions has a 1 year low of $4.30 and a 1 year high of $14.36.

Analyst Upgrades and Downgrades

ASPS has been the subject of several recent analyst reports. Weiss Ratings raised Altisource Portfolio Solutions from a “sell (d)” rating to a “sell (d+)” rating in a report on Thursday, July 2nd. B. Riley Financial assumed coverage on shares of Altisource Portfolio Solutions in a research report on Thursday, April 2nd. They issued a “buy” rating and a $8.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $8.00.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Jane Street Group LLC purchased a new position in Altisource Portfolio Solutions during the 4th quarter worth approximately $75,000. Millennium Management LLC purchased a new stake in shares of Altisource Portfolio Solutions in the 3rd quarter valued at $141,000. XTX Topco Ltd acquired a new stake in shares of Altisource Portfolio Solutions in the third quarter worth $589,000. Vanguard Group Inc. raised its holdings 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 worth $4,391,000 after purchasing an additional 110,888 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC purchased a new position in shares of Altisource Portfolio Solutions during the first quarter worth $13,442,000. 41.36% of the stock is owned by institutional investors and hedge funds.

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.