Walter Investment Posts Loss In Q2, Updates FY Outlook - Quick Facts

(RTTNews) - Walter Investment Management Corp. (WAC) Monday reported a second-quarter net loss of $12.9 million or $0.34 per share, compared to profit of $143.23 million or $3.75 per share last year.

The latest results included charges related to goodwill impairment in the Reverse Mortgage segment and reductions in the fair value of the company's servicing rights related to changes in valuation inputs.

Net income adjusted to reflect these items was $45.0 million, or $1.19 per share, as compared to net income of $88.6 million, or $2.36 per share, in the second quarter of 2013.

On average, 10 analysts polled by Thomson Reuters expected earnings of $1.22 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the second quarter was $413.7 million, a decline of 31 percent from $595.96 million last year. Analysts expected revenues of $381.07 million.

The year-over-year decrease in revenue reflected a $116.3 million decrease in net servicing revenue and fees, primarily driven by a $136.7 million decrease from changes in valuation inputs.

Based on the performance through the first half of 2014 and outlook for key segments through the remainder of the year, including continued softness in the reverse segment, the company anticipates results for the year are likely to be in the low-to-mid point of its previously provided outlook for 2014.

The previously provided outlook includes an Adjusted EBITDA range of $650 million to $725 million and an adjusted earnings per share after tax range of $5.25 to $6.25. Analysts look for earnings of $5.23 per share.