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

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

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 Altisource Portfolio Solutions stock opened at $6.37 on Thursday. The firm has a 50 day simple moving average of $6.69 and a 200 day simple moving average of $6.47. Altisource Portfolio Solutions has a fifty-two week low of $4.30 and a fifty-two week high of $14.36. The firm has a market cap of $71.80 million, a P/E ratio of 11.79 and a beta of 0.25.

Institutional Investors Weigh In On Altisource Portfolio Solutions

A number of institutional investors and hedge funds have recently made changes to their positions in ASPS. Jane Street Group LLC acquired a new stake in Altisource Portfolio Solutions in the fourth quarter worth about $75,000. Millennium Management LLC bought a new position in shares of Altisource Portfolio Solutions in the 3rd quarter valued at about $141,000. XTX Topco Ltd acquired a new stake in shares of Altisource Portfolio Solutions during the 3rd quarter worth approximately $589,000. Vanguard Group Inc. raised its stake 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 buying an additional 110,888 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC bought a new stake in shares of Altisource Portfolio Solutions during the first quarter worth approximately $13,442,000. Institutional investors own 41.36% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages have weighed in on ASPS. B. Riley Financial assumed coverage on shares of Altisource Portfolio Solutions in a research note on Thursday, April 2nd. They set a “buy” rating and a $8.00 price objective on the stock. Weiss Ratings upgraded Altisource Portfolio Solutions from a “sell (d)” rating to a “sell (d+)” rating in a 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. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus 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.