Strong Default Service Drives LPS in Q1
Mortgage industry technology provider Lender Processing Services (LPS) posted $50m in net earnings for Q109 as default services business remained strong, according to its earnings statement. The company's consolidated revenues rose almost 20% compared with the year-ago quarter, affected by the strong results at LPS' default services business. President and CEO Jeff Carbiener said the company's mortgage processing business posted a strong quarter, despite the decline in the loan facilitations services division. Carbiener said LPS now expects to build on a strong first quarter and post second-quarter adjusted earnings from 66 to 68 cents per share. "For full year 2009, we now expect revenues to grow 13% to 15% compared to 2008," he added, "and adjusted earnings to come in at the higher end of the $2.64 to $2.74 per diluted share guidance." The company on Wednesday released the April 2009 LPS Mortgage Monitor, an in-depth report of mortgage industry performance indicators as of March month end. Among the findings, LPS reports that the number of newly delinquent loans declined in March. On the other end of the spectrum, foreclosure inventories experienced the highest monthly increase in nearly three years. Write to Diana Golobay at email@example.com. Disclosure: The author held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments.