Excluding the prepayment costs "and a $0.9 million reduction in litigation accruals," Ocwen's first-quarter net income would have been $29.1 million, or 27 cents a share.
CEO Ron Faris said the company achieved "a quarterly record volume of 24,502 modifications, up more than 22% over the fourth quarter of 2010, and a large reduction in non-performing loans."
Ocwen's shares closed at $11.82 Thursday, returning 24% year-to-date. The shares trade for 9 times the consensus 2012 earnings estimate of $1.28 a share, among analysts polled by FactSet.
After the first-quarter earnings announcement in May, KBW analyst Bose George reiterated his "outperform" or "buy" rating for Ocwen's shares with a target price of $13.00, and increased his 2011 earnings estimate to $1.27 a share from $1.19. George estimates Ocwen will earn $1.44 a share in 2012.After a "a solid quarter from an operating basis," George said the company remained "well positioned." Regarding the potential for further acquisitions, George said that Ocwen was "very under-levered so it should be able to fund meaningful