ASPS Earnings Prediction
The chart below shows how ASPS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ASPS sees a -4.42% change in stock price 10 days leading up to the earnings, and a -0.99% change 10 days following the report. On the earnings day itself, the stock moves by -1.59%. This data can give you a slight idea of what to expect for the next quarter's release.
ASPS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
25.00M
10.83%
0.79%
Gross Margin
--
--
--
Operating Margin
4.42%
128.12%
-47.38%
Net Margin
-37.21%
-25.59%
11.57%
EPS
-0.33
-35.29%
13.79%
No Data Available
ASPS Earnings Analysis
Altisource Portfolio Solutions S.A. Corporation (ASPS.O) Earnings Conference Call
Positive
Service Revenue Surge: 1. Service Revenue Growth: Altisource generated $38.2 million in service revenue for Q3 2024, marking an 11.8% increase year-over-year and the strongest quarterly performance in 12 quarters.
Adjusted EBITDA Increase: 2. Adjusted EBITDA Improvement: The company reported adjusted EBITDA of $3.6 million for the quarter, a $2.8 million improvement compared to Q3 2023, driven by higher service revenue and lower corporate costs.
Service Revenue Increase: 3. Year-to-Date Performance: For the first nine months of 2024, service revenue increased by $7.5 million or 7% compared to the same period last year, with adjusted EBITDA up by $13.8 million.
Renovation Revenue Surge: 4. Renovation Business Growth: The recently launched renovation business generated $1.5 million in revenue during Q3 2024, significantly up from a few hundred thousand in Q2, indicating strong ramp-up potential.
Sales Pipeline and Wins: 5. Sales Wins and Pipeline: The company won new business estimated to generate $1.7 million in annual revenue and ended the quarter with a weighted average sales pipeline of $23.2 million in the service earned real estate segment.
Negative
Foreclosure Metrics Decline: 1. Decline in Foreclosure Metrics: Average serious delinquency rates decreased by 15%, foreclosure initiations fell by 7%, and foreclosure sales dropped by 14% compared to the same period last year, negatively impacting revenue from higher-margin businesses.
Increased SG&A Expenses: 2. Higher SG&A Costs: SG&A expenses increased by approximately $1.8 million due to legacy indemnity claims and bad debt expense, which contributed to a decline in adjusted EBITDA despite revenue growth.
Adjusted EBITDA Decrease: 3. Adjusted EBITDA Decline: Adjusted EBITDA of $3.6 million represented an $800,000 decline compared to the previous quarter, primarily due to increased SG&A costs and a less favorable revenue mix.
Lower Guidance Outlook: 4. Lower Guidance Expectations: The company anticipates achieving close to the low end of its guidance for the year, primarily due to lower-than-expected foreclosure starts and sales, which negatively impacted higher-margin businesses.
Corporate Segment Financial Strain: 5. Corporate Segment Losses: The corporate segment reported an adjusted EBITDA loss of $7.2 million, which, while an improvement from the previous year, indicates ongoing financial strain in managing corporate costs.
ASPS FAQs
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ASPS Earning Call Sentiment
Altisource Portfolio Solutions SA (ASPS) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ASPS.O
14.05%Positive
The earnings call highlights strong service revenue growth and improved adjusted EBITDA, with a significant margin increase. Despite some challenges in the renovation business and higher SG&A costs, the company is optimistic about future growth and has added new clients. The lack of a share repurchase program is a negative, but the overall financial health and market expansion efforts paint a positive picture. The Q&A section reveals a cautious yet optimistic outlook, particularly in the renovation business, suggesting a positive stock price movement in the short term.