Ocwen Reports Worse-than-Expected Loss, Shares Tumble
April 27 2016 - 6:20PM
Dow Jones News
Ocwen Financial swung to a much deeper-than-expected loss in its
latest quarter, marking the third straight quarterly loss for the
beleaguered mortgage-servicing company.
Shares tumbled 21% in after-hours trading. Through Wednesday's
close, the stock had erased 64% of its value closing at $2.84 a
share.
In the wake of regulatory problems, the West Palm Beach, Fla.,
company has pared down its mortgage-servicing rights and shifted
its focus to mortgages not owned by government agencies, selling
off assets and reducing its workforce.
Earlier this year, Ocwen paid $2 million to settle with the
Securities and Exchange Commission over charges that it used flawed
methodology to value mortgages and lacked proper accounting
controls.
On Wednesday, the company attributed the steep quarterly loss to
the impact of sales of agency mortgage servicing rights and to
higher monitoring costs. Ocwen said it would continue to try to
improve costs in order to help stabilize the business.
Over all, the company reported a quarterly loss of $111.3
million, or 90 cents a share. A year earlier, Ocwen posted a profit
of $34.4 million, or 27 cents a share.
Revenue dropped 35% to $330.8 million. Analysts projected a loss
of 39 cents a share and $346.3 million in sales, according to
Thomson Reuters.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
April 27, 2016 18:05 ET (22:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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