Ocwen Financial (OCN) is my largest long holding and they beat estimates smartly this morning. This is a stock on no one's radar and as people pile into unprofitable, debt laden companies - Ocwen just sat there doing nothing for us of late. One day when fundamentals mean something, I suppose we'll do ok again - we have a nice pop today but really what is +9%. That's 4 minutes of trading in a casino, dry bulk shipper, REIT, or financial. Oh well, solid results.
- Ocwen Financial Corp ( OCN ), said first-quarter net income nearly tripled on lower interest expenses and a narrower loss on trading securitie s. The company earned $15.1 million, or 24 cents a share, compared with $5.3 million, or 8 cents a share, a year earlier .
- Interest expenses for the quarter was $16.7 million, down from $26.1 million in the year-ago period. Loss on trading securities was $380,000 compared with a loss of $12 million a year earlier.
- Ocwen has recently turned its focus away from Wall Street, where it used to benefit from the heady production of risky home loans, to the nation's capital, where policy-makers are busy tearing apart mortgage market conventions in the name of foreclosure prevention.
- We kept more people in their homes and returned more loans to performing status than in any prior quarter in our history while reducing operating costs by 18 percent, Chief Executive William Erbey said.
Full report here - expectation was for 17 cents and with the government doing everything in their power to subsidize financial companies to promote bad behavior, I expect more beats as we move forward
Ocwen Financial Corporation is a leading asset manager and business process solutions provider specializing in loan servicing, special servicing and mortgage services.
Long Ocwen Financial in fund; no personal position