NEW YORK (TheStreet) -- Nationstar Mortgage (NSM) shares are losing a fifth of their value today, down 20.4% to $28.39, in trading on Thursday, after the company reported its third quarter earnings results before the opening bell today.
The non-bank residential mortgage servicer reported a 8.3% drop sequentially in third quarter revenue to $504.32 million, well short of analysts' expectations of $568.8 million in revenue during the period.
The company did report a 65% increase in net income to $111 million, for a core EPS of 80 cents per diluted share, 7 cents lighter than the company reported during the same period last year.
TheStreet Ratings team rates NATIONSTAR MORTGAGE HOLDINGS as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NATIONSTAR MORTGAGE HOLDINGS (NSM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: NSM Ratings Report