Financial Services

Try Jim Cramer's Action Alerts PLUS
CLICK HERE NOW

IndyMac Sputters to Loss

05/12/08 - 01:34 PM EDT

TSC Staff

Updated from 12:19 p.m. EDT

IndyMac BancorpIMB swung to a steep first-quarter loss and provided a darkened outlook for the full-year as the company continues to battle a tight credit market.

The independent mortgage lender posted a net loss of $184.2 million, or $2.27 a share, vs. a net profit of $52.4 million, or 70 cents a share, in the year ago period.

The results were much worse than the consensus expectation of a 98-cent-a-share loss prior to IndyMac's prewarning earlier this month, in which it said business was improving from the fourth quarter's loss of $509 million, or $6.43 a share. Analysts polled by Thomson Reuters were expecting a loss of $1.92 a share after the warning.

"While many others in the mortgage finance industry saw worsening losses during the first quarter given the current state of the housing and credit markets, we achieved a 64% reduction in our net loss from last quarter as we took the appropriate steps in the second half of last year to get the bulk of our credit costs behind us," Chairman and CEO Michael W. Perry said in a company statement.

Perry noted that 24% of the first-quarter loss is related to staff reduction severance and office closing costs and 22% is from business activities such as homebuilder construction lending, home equity lending and the conduit channel that the company has permanently closed.

IndyMac shares were down 7.6% to $3.17 in recent trading.

Perry said IndyMac does not expect to return to profitability in 2008, but does expect losses to decline each quarter. That is in contrast to his expectation in February, when he said the company expected "a small profit of roughly $13 million." Analysts expect a loss of 62 cents a share in the second quarter and $2.97 for the full year.

Previous «
1 2
This article was written by a staff member of TheStreet.com.

Headlines & Perspectives

Financial Services

Go To Section Home


05/09/08
Peltz's Trian Is Eying Debt Fund, Sources Say

Activist Nelson Peltz (above) may invest in New York-based Trimaran or bring some of its managers on board his own firm.


05/08/08
Nasdaq Profits Rise on OMX Merger

The exchange operator's shares, however, were sluggish.


05/06/08
Fannie Shares Recover After Grim Results

Despite an ugly forecast from the government-sponsored mortgage giant, the stock rallied after its federal regulator said it would lower a capital requirement.


05/19/08
Cramer on Top Searched Stocks: Yahoo!

Yahoo! is among the most searched stocks on TheStreet.com. Here's what Cramer had to say about the stock recently.


05/17/08
Jim Cramer's Best Blogs

Catch up on his thinking on the hottest topics of the past week.


04/26/08
Coming Week: Make or Break

Investors will have to deal with a Fed meeting and another flood of earnings and economic data.


05/19/08
Top Rocket Stocks: Ensco

Ensco International and Echelon have the potential to move higher in coming days.


04/28/08
Monday's Analysts' Upgrades, Downgrades

See who made what calls.


05/19/08
Telecom Giants See a Savior in Video

The addition of video is helping telecom companies compete against cable and satellite companies.


05/19/08
Contract Expiration Tempers Oil's Rise

The June West Texas Intermediate contract reflects selling pressure ahead of Tuesday's expiration. But stocks in the sector are generally trading higher.


05/19/08
Analysts' Upgrades, Downgrades: Amazon

See who made what calls.


Your Recent Quotes: Quote Up0 | Quote Down0
Dow S&P 500 NASDAQ
Oil*
Gold
10 Yr
0.00%
%
%
%
Data delayed 20 min
Sign up for our FREE newsletters now.

Keep on top of the market and the critical information you need to make more profitable investing decisions.

  • Cramer's Daily Booyah!
  • Before the Bell

Privacy Policy

See All Free Newsletters

Premium Stock Ideas
Access Action Alerts Plus to find out Cramer’s latest picks now!