Ocwen Shares Plummet As Ocwen Expected To Post A Loss For 2015

Ocwen shares
With Ocwen shares plummetting, Ocwen Financial is sinking faster than the Titanic

Ocwen shares will lose another 53 cents a share because as the company itself predicted just last month,  Ocwen is now in a position to record a loss in 2015 after it announced Wednesday that Ocwen will post a net loss of $66.8 million in the third quarter.

Ocwen only managed to generate $405 million in revenue after liquidating billions in mortgage servicing contracts. 

According to a note from Briefing.com, Ocwen’s third-quarter results were worse than the Capital IQ Consensus, which had Ocwen posting a loss of $0.22 per share.

For the full year 2014, Ocwen recorded a net loss of $546 million, a stark reversal from 2013, when Ocwen reported net income of $310.4 million and Ocwen shares have sunk by 85%.

Ocwen has been undergoing a shift in its business model over the last 18 months, ever since it went into a $150 million settlement with the New York Department of Financial Services over its servicing practices that also included the removal of longtime CEO William Erbey.

Ocwen Executives have already warned investors to expect Ocwen to post a loss in 2015. This is due to lower revenue expectations coupled with higher expected operating, interest and tax expenses.

The company told holders of Ocwen shares that its pre-tax loss for the third quarter of 2015 was $55.9 million.

The Plummeting Value Ocwen Shares Explained 

Significant items also contributed to Ocwen’s pre-tax results:

 

 

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