Walter Investment Soars 16% On 1Q Results
Shares were higher by 17.44% to $29.16 with slightly more than an hour of trading left on the day.
The mortgage servicer posted core earnings of $58 million or $1.53 per share vs. a consensus estimate of $0.96. That is down slightly from the first quarter of last year, when Walter earned $58.9 million, or $1.57 per diluted share.
"Given the operating environment, we look very favorably on these results," stated a report from Oppenheimer analyst Ben Chittenden. The analyst was pleased Walter was able to complete acquisitions of mortgage servicing rights even though regulators have stepped up scrutiny of nonbank servicers such as Walter, Nationstar Mortgage
Oppenheimer's Chittenden was also pleased that "conversations with potential clients regarding transactions have been accelerating," and that the company maintained 2014 "core" earnings guidance.