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

Key Points

• Altisource Portfolio Solutions reported adjusted EPS of $0.13, missing analyst expectations of $0.18 by $0.05, despite service revenue rising 26% year over year to $49.8 million and Adjusted EBITDA increasing 17% to $4.3 million.
• Growth indicators remained positive, including a $12.8 million annualized revenue pipeline in Servicer and Real Estate, an $18.5 million pipeline in Origination, and Hubzu inventory more than quadrupling to 26,000 assets.
• Margins declined because of unfavorable revenue mix, implementation investments, and the wind-down of some Rithm-related business; analysts hold a consensus “Hold” rating with an average price target of $8.00.

Altisource Portfolio Solutions (NASDAQ:ASPS - Get Free Report) posted its quarterly earnings data on Thursday. The business services provider reported $0.13 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.05), FiscalAI reports. Altisource Portfolio Solutions had a negative return on equity of 1.69% and a negative net margin of 5.93%.

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 Price Performance

Shares of NASDAQ ASPS traded down $0.25 during mid-day trading on Thursday, hitting $5.40. The company had a trading volume of 5,085 shares, compared to its average volume of 22,401. The business's 50-day simple moving average is $5.71 and its 200-day simple moving average is $6.18. Altisource Portfolio Solutions has a 12 month low of $4.30 and a 12 month high of $10.40. The firm has a market cap of $61.62 million, a P/E ratio of -5.45 and a beta of 0.19.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on ASPS shares. Weiss Ratings raised shares of Altisource Portfolio Solutions from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Monday. Zacks Research upgraded shares of Altisource Portfolio Solutions from a "strong sell" rating to a "hold" rating in a report on Monday, September 21st. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $8.00.

Insider Transactions at Altisource Portfolio Solutions

In other news, major shareholder Benefit Street Partners Llc purchased 48,991 shares of the business's stock in a transaction on Monday, August 3rd. The stock was purchased at an average price of $5.78 per share, with a total value of $283,167.98. Following the acquisition, the insider directly owned 1,803,045 shares in the company, valued at approximately $10,421,600.10. The trade was a 2.79% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Insiders bought 52,000 shares of company stock worth $299,847 in the last 90 days. Insiders own 19.07% of the company's stock.

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.

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