Lender Processing Services, Inc
) reported fourth quarter 2012 net earnings of $2.8 million or 3
cents share versus a net loss of $21.2 million or 25 cents per
share in the year-ago quarter. For full year 2012, GAAP earnings
stood at $70.4 million or 83 cents per share versus $96.5 million
or $1.13 per share in the previous year.
Adjusted earnings were $62.8 million or 74 cents per share in the
reported quarter versus $60.4 million or 72 cents per share in
the year-ago quarter. The quarterly adjusted earnings beat the
Zacks Consensus Estimate of 67 cents.
For full year 2012, adjusted earnings stood at $236.8 million or
$2.80 per share versus $228.9 million or $2.68 per share in the
preceding year. The yearly adjusted earnings beat the Zacks
Consensus Estimate of $2.73.
The company reported revenues of $501.0 million in fourth quarter
2012, down 2.1% year over year, driven by lower Default Services
revenues, partially offset by higher revenue in Technology, Data,
and Analytics (TD&A) and Origination Services. The quarterly
revenues beat the Zacks Consensus Estimate of $488 million.
For full year 2012, total revenue was $2.0 billion, up 0.7% year
over year, due to increased revenues from Origination Services
and TD&A, partially offset by lower revenue from Default
Fourth-quarter revenues for the TD&A segment were $189.3
million, up 7.8% year over year. The growth was attributable to
increase in revenues across all business lines. Adjusted
operating income for the segment was $54.8 million versus $57.6
million in the year-ago quarter. The downside was due to higher
Revenues for the Transaction segment fell 7.7% from the
prior-year quarter to $311.7 million. The downside in revenues
was primarily due to 26.0% drop in Default Services revenue,
partially offset by 14.8% increase from Origination Services.
Overall adjusted operating income for the segment stood at $67.4
million versus $70.7 million in the year-ago quarter.
At year-end 2012, cash and cash equivalents of the company was
$236.2 million versus $77.4 million in the year-ago period.
As of Dec, 2012, net cash provided by operating activities stood
at $434.5 million versus $477.8 million in the year-ago quarter.
For the first quarter of 2013, management expects adjusted
earnings per share in the range of 63 cents-67 cents with
revenues of $460 million-$480 million.
Lender Processing is well positioned to enhance the mortgage
value chain and deliver innovative technology, data and expertise
to its clients. Going forward, the rapidly growing mortgage
landscape continues to create new requirements for its
clients. Also, the recent conclusions of many of the
company's legal matters allow it to focus more on growth and
innovation to create new opportunities for the company .
However, the company needs to be wary of intense competition
from industry bigwigs, which include formidable names such as
Heartland Payment Systems Inc
Fidelity National Information services,
), all carrying a Zacks Rank #2 (Buy). However, Lender Processing
currently has a Zacks Rank #4 (Sell).
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