PHH Corp. (NYSE:PHH) posted 2Q earnings that came in at a $0.31 a share loss and revenues were $196 million. EPS for 2Q was expected to be a $0.02 loss. Full year 2014 EPS is now expected to be a $1.23 a share loss -- versus the consensus of a $0.60 loss from a month ago.
The stock is flat over the last month. Back in October, when we first covered the stock, we put a $44 price target on the stock. Shares are still 80% off those levels, being down 4% since we profiled it. The big news is that the company has sold off its Fleet Management Services business. This comes as the company plans to focus on its Mortgage business. As we noted in October,
There has been talk around the water cooler for a number of years now that a separation of the fleet management and mortgage businesses would unlock value for shareholders...However, bringing an IPO could set PHH up for a big rally as it relates to rising interest rates, without the overhang of the slow growth fleet management business...it would allow the company to better focus on the mortgage business.
The company is using the $820 million proceeds from fleet management to implement a $200 million accelerated buyback plan -- part of its $450 million planned repurchases.
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