NEW YORK (TheStreet) -- Shares of Ocwen Financial (OCN) were gaining 18.3% to $10.04 on Friday after the mortgage investment company beat analysts' estimates for earnings and revenue in the first quarter.
Ocwen Financial reported earnings of 27 cents a share for the first quarter, above analysts' estimates of 13 cents a share. Revenue fell 7.4% year over year to $510.4 million for the quarter, but it was above analysts' estimates of $488 million.
"I am proud of what we have accomplished as far as managing the business through this difficult transition period," President and CEO Ron Faris said. "We made great progress on our asset sale strategy, have returned to profitability and continue to generate substantial operating cash flow."
Faris continued, "However, I am not satisfied with only making $34 million in the quarter. We intend to do better."
About 5.3 million shares of Ocwen Financial were traded by 10:38 a.m. Friday, compared to the company's average trading volume of about 5.9 million shares a day.
TheStreet Ratings team rates OCWEN FINANCIAL CORP as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate OCWEN FINANCIAL CORP (OCN) a SELL. This is driven by a number of negative factors, 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 deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."