Lender Processing Services (LPS) should easily beat third-quarter earnings forecasts after benefiting from improved foreclosure and mortgage metrics, according to one analyst at Stephens Inc. ()Yahoo! Finance()
The analyst said origination and foreclosure statistics are up in the mid-single digits for the quarter. Malloy also cited the hiring of Hugh Harris as chief executive as a boon for the firm. He filled a role left vacant by the resignation of former CEO Jeffrey Carbiener in July who left for health reasons. “Harris comes as positive news given that it was done in a shorter time frame than expected and that he comes with strong reviews from others in the industry,” Malloy said. When delving into ongoing investor concerns about legal and regulatory issues, Malloy said those worries “with regards to legal and regulatory overhang, as well as the possibility that a real pickup in numbers will not take place in the near term are well priced into the stock.” He also said “prices at these low levels present an attractive risk-reward opportunity upon any further clarity that may present itself.” LPS reported earlier this month that foreclosure starts rose 20% in August from the previous month to the highest level of the year. Write to Kerri Panchuk.