LONDON, November 20, 2014 /PRNewswire/ --
Investor-Edge.com has issued free post-earnings analysis on Ocwen Financial Corp. (NYSE: OCN). On October 30, 2014, the company announced its financial results for Q3 FY14 (period ended September 30, 2014). Click on http://www.investor-edge.com/FreeReports to read our free earnings review on Ocwen Financial Corp. (Ocwen). For Q3 FY14, the company reported revenue of $513.7 million and income from operations of $58.7 million. Bill Erbey, Ocwen's Executive Chairman, informed that the company recently reached a significant milestone by making its 500,000th loan modification, including 290,000 HAMP modifications. He added that Ocwen is the leader in foreclosure prevention with 44% more HAMP modifications than any other servicer. Our free coverage report can be accessed at:
Ocwen saw a decline in its total revenues to $513.7 million in Q3 FY14 from $531.2 million in Q3 FY13. The company's quarterly revenue fell short of Bloomberg analysts' forecasts of $541.8 million. During Q3 FY14, the company's revenues from servicing and subservicing fees narrowed to $466.0 million from $483.3 million in Q3 FY13, while, the company's revenues from other sources increased to $20.6 million in Q3 FY14 from $19.7 million in Q3 FY13. The free research on OCN can be downloaded as in PDF format at:
On a GAAP basis, Ocwen reported a pre-tax loss of $72.3 million in Q3 FY14, compared to a pre-tax income of $69.4 million in Q3 FY13. During Q3 FY14, Ocwen incurred a total of $137.0 million in normalized expenses. The company's normalized pre-tax earnings decreased to $64.8 million in Q3 FY14 from $147.3 million in the year-ago period. Normalized pretax earnings were impacted by $120.0 million of reserves for various regulatory and legal matters, including a $100.0 million accrual for a potential settlement with the New York Department of Financial Services, $9.0 million for Fair Value changes and $8.1 million of integration, technology-related and severance costs. Ocwen reported a net loss of $75.3 million in Q3 FY14, compared to a net income of $60.6 million in the Q3 FY13. Analysts from Bloomberg had expected the company to report net income of $80.3 million in the reported quarter.
Ron Faris, CEO of Ocwen, stated that the company's normalized pretax earnings were lower in the reported quarter largely driven by lower revenue and continued elevated legal and compliance costs. He added that the company's revenue was down as Ocwen saw a decline in modifications and increased resolution timelines. Mr. Faris said that the company saw reductions in operating expenses largely offset by continued increases in its legal and compliance costs. The CEO added that on a positive note, Ocwen generated $195 million of normalized adjusted cash from operations in Q3 FY14 and repurchased almost $159 million of common stock. He further said that from an operating standpoint, the company is excited to have completed its ResCap integration and migration to one common servicing platform, which positions it well to drive further quality and productivity improvements in 2015. Visit Investor-Edge and access the latest research on OCN at:
On the day of the earnings release, October 30, 2014, Ocwen's stock rallied 11.29%, ending the session at $23.16. Since then, shares of the company have witnessed a mixed momentum. On the last close, Wednesday, November 19, 2014, it finished at $21.30, 1.19% above its previous day's closing price of $21.05, after vacillating between $20.91 and $21.36. A total of 4.37 million shares were traded, which was above its three months average volume of 3.13 million shares. Over the previous three sessions, the company's shares have advanced 3.40%. However, the stock has declined 16.54% over the last one month and 61.59% from the beginning of 2014. Shares in Ocwen closed below their 50-day and 200-day moving averages of $24.13 and $32.45, respectively. Furthermore, the stock traded at a PE ratio of 10.43 and has a Relative Strength Index (RSI) of 42.79. Sign up and read the free analyst's notes on OCN at:
Sneak Peek to Corporate Insider Trading
In the last one month Ocwen Financial Corp. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on OCN is available at:
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