NEW YORK (
(OCN - Get Report)
shares moved higher following a 66% rise in second quarter earnings and management commentary on potential share repurchases.
The mortgage loan servicer reported a second-quarter profit of $76.7 million, or $0.53 per share, versus $44.8 million, or $0.32 per share, for the second quarter of 2012. Revenues of $530.0 million were up 151% year-over-yer.
While the strong numbers caused Ocwen's shares to rise some 3% Thursday morning, they took a decided step higher midway through an earnings call that began at 11 a.m. One investor who communicates with
on condition of anonymity attributed the jump to commentary surrounding share buyback potential.
While noting that "investing in new opportunities will always be our top priority to deploy capital," CFO John Britti said during the call Ocwen "will soon reach a point where we can both find growth and return cash to shareholders through a stock repurchase program." Britti added Ocwen "could repurchase at least $900 million of stock without generating any adverse tax consequences and we expect that number to grow over time."
Ocwen shares were up 7.58% to $51.23 at 12:49 p.m. EST Thursday.
Written by Dan Freed in New York