Walter Investment Management: Catching A Falling Knife
Buying Opportunity In Walter Investment Management: Sooner Or Later The Limbo Will Stop
Ashleigh Rogers • 22 Comments
Ashleigh Rogers • 22 Comments
Tue, May 3, 10:03 AM
- Like with Ocwen Financial before it, the big drop in interest rates took its toll on the fair value of Walter's (WAC -27.1%) portfolio of mortgage servicing rights - $226.6M pretax to be exact ($3.95 per share after tax).
- Total expenses of $343.4M fell 8% Y/Y, thanks to lower payroll.
- The servicing segment added $17.5B of UPB to its book in Q1, ending with 2.2M accounts with a UPB of $255.3B.
- Originations revenue slowed 23% Y/Y to $100.3M. Adjusted earnings of $17.9M fell from $44.3M.
- The conference call is just getting underway.
- Previously: Walter Investment misses by $0.78, misses on revenue (May 3)
Tue, May 3, 6:36 AM
Mon, May 2, 5:30 PM
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Mon, Feb. 29, 7:38 AM
- Servicing segment: Added about $10B up UPB during quarter, with ending balance of $246.6B. Total revenue of $220.4M up 20% Y/Y, with fair value changes on MSRs and higher servicing fees helping. Expenses of $369.6M up 46%, with a goodwill impairment charge of $151M accounting for more than the whole increase. AEBITDA of $90.4M up 22%.
- Originations revenue of $102.8M up 15% Y/Y. AEBITDA of $20.5M about doubled from a year ago.
- Reverse Mortgage revenue of $18.1M down 66% Y/Y. AEBITDA of negative $9M vs. positive $1.5M a year ago. Not pleased with results, company is taking steps to drive improvement this year.
- Conference call at 10 ET
- Previously: Walter Investment misses by $0.49, beats on revenue (Feb. 29)
- WAC flat premarket
Mon, Feb. 29, 6:41 AM
Sun, Feb. 28, 5:30 PM
Nov. 5, 2015, 6:08 AM
- Walter Investment (NYSE:WAC): Q3 EPS of $0.44 misses by $0.09.
- Revenue of $219.39M (-43.2% Y/Y) misses by $106.89M.
Nov. 4, 2015, 5:30 PM
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Aug. 10, 2015, 7:04 AM
- Walter Investment (NYSE:WAC): Q2 EPS of $0.65 beats by $0.06.
- Revenue of $412.43M (-0.3% Y/Y) beats by $51.13M.
Aug. 9, 2015, 5:30 PM
May 7, 2015, 8:27 AM
- Q1 adjusted earnings of $38.3M or $1.02 per share down 34% Y/Y. Adjusted EBITDA of $162.7M down 3%.
- Revenue of $310.9M fell $59.1M from a year ago thanks to a $81.6M charge against the fair value of MSRs as rates fell and prepays jumped. Nationstar reported a similar result earlier this week and Walter fells sharply in sympathy.
- Servicing revenue of $143.8M down 41% Y/Y thanks to that above charge. Expenses of $194.2M up 9%. Adjusted earnings of $40.1M down 64%.
- Originations revenue of $130.3M up 19% Y/Y. Expenses of $88.5M down 7%. Adjusted earnings of $44.3M up 113%.
- Reverse Mortgage revenue of $43.9M up 58%. Expenses of $57.4M up 55% as hiring ramped up. Adjusted loss of $1.3M. Funded origination volumes up 27%.
- Conference call at 10 ET
- Previously: Walter Investment EPS of -$0.82 (May 7)
- WAC -1% premarket
May 7, 2015, 7:16 AM
- Walter Investment (NYSE:WAC): Q1 EPS of -$0.82 may not be comparable to consensus of $0.44.
- Revenue of $310.85M (-16.0% Y/Y) misses by $19.48M.
Feb. 26, 2015, 10:22 AM
- Q4 adjusted loss of $2.1M or $0.06 per share vs. a profit of $30.8M and $0.81 one year ago. Adjusted EBITDA of $85M vs. $128.8M a year ago.
- The quarter included $50.4M in legal and regulatory costs.
- Servicing segment revenue of $113.8M down 30% Y/Y, primarily thanks to a fall in the fair value of MSRs as interest rates fell. Expenses of $205.5M up 44% thanks to those higher legal and regulatory costs.
- Originations segment revenue of $89.5M down 34%.
- Reverse mortgage revenue of $53.2M up 36%.
- Outlook: Management is looking to cost savings and expects $35M to be realized in 2015, and another $5M after. Additional savings of at least $35M have been identified.
- Previously: Walter Investment misses by $0.69, misses on revenue (Feb. 26)
- WAC -16.1%
Feb. 26, 2015, 7:06 AM
- Walter Investment (NYSE:WAC): Q4 EPS of -$0.06 misses by $0.69.
- Revenue of $317.5M (-21.2% Y/Y) misses by $28.33M.
Nov. 6, 2014, 12:31 PM
- Amid an earnings miss and lowered guidance, Walter Investment (WAC -20.2%) discloses inquiries from a number of state agencies into its Green Tree Servicing unit.
- Previously: Walter Investment reports sizable decline in earnings
- Earnings fell at Nationstar Mortgage (NSM -20.6%), but in a bit of good news, the company did say it entered into commitments for $43B in new MSR acquisitions.
- Finally, there's lesser-followed Stonegate Mortgage (SGM -15.9%), which went public just more than a year ago, missing estimates by a wide margin with CEO Jim Cutillo noting "industry headwinds and interest rate volatility." The company's servicing portfolio ended Q3 with $17.7B UPB, up 48% this year and up 82% Y/Y.
- New Residential (NYSE:NRZ) - a specialty servicer, but with a somewhat different business model than the other three - reported solid results today and is flat on the session.
Walter Investment Management Corp operates as a mortgage banking company. It focuses on the servicing and origination of residential loans, including reverse loans. . It operates through six business segments: Servicing, Originations, Asset Receivables Management, Insurance, Loans and Residuals... More
Industry: Asset Management
Country: United States
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