Altisource Portfolio Solutions (NASDAQ:ASPS) Announces Quarterly Earnings Results

Altisource Portfolio Solutions (NASDAQ:ASPS) announced its quarterly earnings data on Thursday. The business services provider reported $0.13 earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.05), FiscalAI reports. The company had revenue of $51.92 million for the quarter, compared to analyst estimates of $50.60 million. Altisource Portfolio Solutions had a negative net margin of 5.93% and a negative return on equity of 1.69%.

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

• Third-quarter service revenue rose 26% year over year to $49.8 million, while Adjusted EBITDA increased 17% to $4.3 million; adjusted EPS grew 30% to $0.13.
• Recent customer wins continued to ramp, with a weighted average estimated pipeline of $12.8 million in annualized stabilized revenue in Servicer and Real Estate and $18.5 million in Origination, supporting management’s expectation for further growth.
• Hubzu inventory more than quadrupled year over year to 26,000 assets, and home transactions increased to 789 from 583 a year ago, potentially supporting future sales and revenue as inventory seasons.
• Revenue diversification improved significantly, with customers outside Onity, Rithm, and associated portfolios contributing 72% of service revenue versus 46% a year earlier; management also expects AI, automation, and stable corporate costs to drive operating leverage.
• Consolidated margins declined amid unfavorable revenue mix, customer implementation investments, and the wind-down of certain Rithm-related business, while mortgage origination volumes fell 6% year over year; management expects margin improvement as new business matures.

Altisource Portfolio Solutions Price Performance

ASPS opened at $5.34 on Friday. Altisource Portfolio Solutions has a fifty-two week low of $4.30 and a fifty-two week high of $10.40. The firm has a market capitalization of $60.98 million, a PE ratio of -5.39 and a beta of 0.19. The company’s 50-day moving average is $5.71 and its 200 day moving average is $6.18.

Insider Activity at Altisource Portfolio Solutions

In related news, major shareholder Benefit Street Partners Llc bought 48,991 shares of the company’s stock in a transaction dated Monday, August 3rd. The shares were bought at an average price of $5.78 per share, for a total transaction of $283,167.98. Following the completion of the acquisition, the insider directly owned 1,803,045 shares of the company’s stock, valued at $10,421,600.10. This trade represents a 2.79% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. 19.07% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the company. Zacks Research upgraded Altisource Portfolio Solutions from a “strong sell” rating to a “hold” rating in a report on Monday, September 21st. Weiss Ratings raised Altisource Portfolio Solutions from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Monday. One investment analyst has rated the stock with a Strong Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $8.00.

Altisource Portfolio Solutions Company Profile

Altisource Portfolio Solutions SA (NASDAQ:ASPS) is a technology and services company that supports the mortgage and real estate industries. It provides software, marketplaces and related services designed to help mortgage lenders, servicers, investors and other participants manage loans, properties and real estate transactions.

The company’s offerings have included Hubzu, an online marketplace for buying and selling residential and commercial properties, along with platforms and services for asset management, property preservation, valuation, real estate brokerage and other mortgage-related processes.