LPS 3Q earnings nearly cut in half
Lender Processing Services (LPS) earned $40.5 million, or 48 cents a share, in the third quarter, down 48% from $78.7 million a year ago. Revenue at the Jacksonville, Fla. technology and mortgage services firm declined nearly 14% to $532.1 million in the third quarter. A 23% decline in mortgage originations and elevated expenses led to lower revenue. The company's loan transaction services department reported revenue of $340.2 million for the quarter, a 21% drop from $431.1 million last year. Slower foreclosure proceedings pushed revenue in the LPS default services group down 25% to $199.1 million in the third quarter. Meanwhile, corporate expenses climbed 71% to $34 million from $19.8 million last year due to higher legal and compliance costs, some related to the consent orders signed with federal regulators earlier in April to fix foreclosure missteps discovered in October of last year. Tom Schilling, LPS executive vice president and chief financial officer, expects fourth-quarter revenue to slip further to between $510 million and $520 million. "While the origination market did improve during the quarter, we remain concerned about broader macro-economic conditions and ongoing industry-specific pressures," Schilling said. Write to Jon Prior. Follow him on Twitter @JonAPrior.