Altisource Portfolio Solutions (NASDAQ:ASPS) Announces Quarterly Earnings Results, Misses Estimates By $0.05 EPS

Altisource Portfolio Solutions (NASDAQ:ASPS) announced its quarterly earnings results on Thursday. The business services provider reported $0.13 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.05), FiscalAI reports. Altisource Portfolio Solutions had a negative net margin of 5.10% and a negative return on equity of 2.44%. The company had revenue of $51.92 million during the quarter, compared to the consensus estimate of $50.60 million.

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 Stock Up 3.0%

Shares of ASPS opened at $5.50 on Friday. The company has a market cap of $62.81 million, a PE ratio of -6.18 and a beta of 0.19. The business has a fifty day moving average of $5.71 and a 200 day moving average of $6.17. Altisource Portfolio Solutions has a 52-week low of $4.30 and a 52-week high of $10.40.

Insiders Place Their Bets

In other news, major shareholder Benefit Street Partners Llc bought 48,991 shares of Altisource Portfolio Solutions stock in a transaction dated Monday, August 3rd. The shares were acquired at an average price of $5.78 per share, with a total value of $283,167.98. Following the completion of the purchase, the insider owned 1,803,045 shares in the company, valued at $10,421,600.10. The trade was a 2.79% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. 19.07% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on ASPS shares. Weiss Ratings raised Altisource Portfolio Solutions from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Monday. Zacks Research upgraded Altisource Portfolio Solutions from a “strong sell” rating to a “hold” rating in a report on Monday, September 21st. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Altisource Portfolio Solutions presently has an average rating of “Hold” and an average target price of $8.00.

About Altisource Portfolio Solutions

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.