LPS slashes 2Q earnings estimate
Lender Processing Services' (LPS) stock closed down almost 4% Thursday after the company lowered its second-quarter earnings estimate by 31%. LPS said it now expects adjusted earnings between 54 cents and 56 cents a share for the three months ending June 30, down from prior guidance of between 79 cents and 82 cents a share. The company said weakening default volumes, sluggish loan origination and refinance activity prompted the revision. The mortgage processing and technology firm also expects higher costs for regulatory changes and legal ramifications thereof to hurt earnings for the second quarter. "While we are experiencing very difficult market conditions, our business model remains intact and we continue to be well-positioned to gain additional market share," according to Jeff Carbiener, president and chief executive officer of LPS. The Jacksonville, Fla.-based company's first-quarter income fell 23% from a year earlier, as difficult conditions in the origination and default markets perpetuated an arduous business environment. After falling 90 cents, or 3.71%, to $23.37 in trading on the New York Stock Exchange Thursday, the company's stock was off another $1.20 in after-hours trading. Write to Christine Ricciardi.