NEW YORK (TheStreet) -- Shares of PHH Corp. (PHH) were gaining 5.5% to $26.17 on heavy trading volume Thursday after the credit services company beat analysts' estimates for revenue in the first quarter.
PHH reported revenue of $261 million for the first quarter, up 135.1% from the year-ago quarter and above analysts' estimates of $195.18 million for the quarter. The company reported a loss of 38 cents a share for the first quarter, below analysts' estimates of a loss of 30 cents a share.
Mortgage applications grew 46% to $15.2 billion in the quarter from $10.4 billion in the year-ago quarter. The company expects interest rate lock commitments to close at $2.1 billion for the quarter, up from $1.8 billion in the year-ago quarter.
About 17 million shares of PHH were traded by 3:07 p.m. Thursday, above the company's average trading volume of about 392,000 shares a day.
TheStreet Ratings team rates PHH CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PHH CORP (PHH) 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 strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."