PHH Corp. (PHH) Misses Q2 EPS by 17c, Miss on Revenues

PHH Corp. (NYSE: PHH) reported Q2 EPS of ($0.81), $0.17 worse than the analyst estimate of ($0.64). Revenue for the quarter came in at $112 million versus the consensus estimate of $115.2 million.

Performance Highlights:

• Net loss attributable to PHH Corporation of $46 million or $0.86 per basic share, which includes $24 million of pre-tax expenses related to notable items and $16 million of pre-tax expenses related to Exit and disposal costs.
• Our Board of Directors has authorized an increase in repurchases of shares of our common stock to up to $300 million in the aggregate from $100 million. We intend to launch a modified Dutch Auction tender offer for our shares of common stock in the amount of up to $266 million and at a share price not to exceed $14.25 at the next available securities purchase date.
• Maintains estimate of potential excess cash(1) of up to $655 million which includes $34 million of share repurchases completed to-date and is based on certain assumptions for asset sales, contingencies, working capital, and transaction, restructuring and PLS exit costs.
• In June and July 2017, we closed the initial sales of FHLMC and FNMA MSRs and related advances to New Residential Investment Corp. for $442 million in total proceeds, net of related holdback. On August 7th we closed the initial asset sale of our PHH Home Loans Joint Venture to Guaranteed Rate Affinity for net proceeds of $7 million.
• In August 2017, we settled our previously disclosed FHA regulatory matter for $65 million and previously disclosed regulatory matters with the U.S. Attorney’s Office for the Eastern District of New York and the FHFA for approximately $9.5 million. These settlements were included in our recorded liability as of June 30, 2017.

For earnings history and earnings-related data on PHH Corp. (PHH) click here.

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