Ocwen Profit Up 121%, Fed By Acquisitions

NEW YORK ( TheStreet) -- Ocwen Financial ( OCN) saw profits more than double to $45.1 million, or 31 cents per share in the first quarter versus $19.3 million or 14 cents per share a year ago, though a flurry of deal-making made year over year comparisons difficult.

Earnings per share were "extremely tough to model with acquisitions," wrote Michael Grondahl, an analyst with PiperJaffray. Grondahl, who has an "outperform" recommendation on the mortgage servicer, was nonetheless encouraged by the results.

"Management commentary was very strong, highlighting lower funding costs expected and excellent growth opportunities in the near term," he wrote, adding that Ocwen's roughly 24,000 mortgage modifications were the most important figure, providing "a good looking forward indicator.

"The Company's string of record quarterly revenues will continue into the second quarter as we benefit from a full quarter of ResCap revenue and our recent acquisition of Ally Bank's mortgage servicing rights," commented Bill Erbey, Ocwen's Chairman.

Ocwen shares opened up 0.27% to $36.56.

-- Written by Dan Freed in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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