NEW YORK (TheStreet) -- Shares of Walter Investment Management Corp. (WAC) are dropping -4.74% to $26.93 on Monday morning after the company reported a net loss of -$12.9 million, or -34 cents per diluted share for the 2014 second quarter, compared to net income of $143.2 million, or $3.75 per diluted share for the year ago period.
The business services provider in the mortgage industry said that adjusted net income for the most recent quarter was $45 million, or $1.19 per diluted share, compared to $88.6 million, or $2.36 for the 2013 second quarter.
"The noted performance differences in the second quarter of 2014 as compared to the second quarter of 2013 were primarily driven by strong operating results in the originations segment in the second quarter of 2013 due to HARP related retention volumes and margins," the company said.
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Walter Investment’s total revenue declined by 31% to $413.7 million, from $569.2 million.
Analysts polled by Thomson Reuters expected the company to post earnings of $1.22 per share on $381 million in revenue.
Separately, TheStreet Ratings team rates WALTER INVESTMENT MGMT CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate WALTER INVESTMENT MGMT CORP (WAC) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
You can view the full analysis from the report here: WAC Ratings Report