Close

Ocwen Financial (OCN) Tops Q4 EPS by 23c, Revenues Beat

February 26, 2020 6:46 AM EST

Ocwen Financial (NYSE: OCN) reported Q4 EPS of $0.26, $0.23 better than the analyst estimate of $0.03. Revenue for the quarter came in at $261.17 million versus the consensus estimate of $256.2 million.

  • Achieved Net Income of $34.9 million for the fourth quarter of 2019
  • Increasing 2020 volume target for lending and flow channels to $15 - 20 billion reflecting continued strong growth and business momentum across originations platform
  • Expense savings from cost re-engineering initiatives were significantly ahead of expectations through the fourth quarter
  • Ended the year with $428 million of cash and $412 million of total stockholders' equity, or a book value per share of $3.06
  • Cooperating with NRZ to support the termination of the legacy PHH subservicing agreement, which generated an estimated pre-tax loss of approximately $3 million in the fourth quarter after direct servicing costs and allocated overhead
  • Expect there to be no material financial impact from right sizing and transition costs, net of deboarding fees, related to exiting the legacy PHH subservicing portfolio with NRZ

Glen A. Messina, President and CEO of Ocwen, said, “We made terrific progress in 2019 on improving profitability, building a sustainable business model and reducing enterprise risks. We have built a significant originations platform that we expect to generate enough volume to grow our owned servicing portfolio in 2020, as well as to take advantage of opportunities to grow and diversify our subservicing, excluding NRZ, with the support of potential capital partners.”

Mr. Messina added, “We believe our progress on growth and cost re-engineering creates a solid foundation for our transformation into a diversified mortgage originator and servicer that can perform through the mortgage industry cycle. We are excited about the opportunities available to us to increase shareholder value through building multiple origination sources, continued strong operational execution and our continuous cost re-engineering initiatives. In this context, we do not view the unprofitable NRZ subservicing portfolio we are exiting as core to the sustainable business model we are building. We look forward to executing the next phase of our plans targeted at improving our long-term competitiveness and financial performance.”

For earnings history and earnings-related data on Ocwen Financial (OCN) click here.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Corporate News, Earnings, Management Comments

Related Entities

Earnings