NEW YORK (TheStreet) -- Shares of Ocwen Financial (OCN) - Get Report were spiking 20.03% to $4.22 on heavy trading volume early Thursday afternoon after the company posted an unexpected profit for the 2016 third quarter.
Following yesterday's market close, the West Palm Beach, FL-based mortgage loan company reported earnings of 8 cents per share. Analysts surveyed by FactSet were forecasting a loss of 34 cents per share.
Revenue of $359.4 million surpassed analysts' estimates of $353.1 million.
"We are very pleased with the financial result this quarter, recording our first quarterly profit since the second quarter of 2015," CEO Ron Faris said in a statement, "Our mortgage lending business saw growth in origination volume, but we must improve margins."
More than 8.94 million of the company's shares changed hands so far today vs. its average 30-day volume of 3.10 million shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: OCN