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Luxembourg's Altisource Q3 service revenue rises on new customer wins

By Reuters News


Overview

  • Luxembourg real estate services provider's Q3 service revenue grew 26% yr/yr on new customer wins

  • Adjusted diluted EPS for Q3 rose 30% yr/yr to $0.13

  • Company's Q3 adjusted EBITDA rose 17% yr/yr, margin declined due to revenue mix and investments


Outlook

  • Altisource aims to reach $45 mln run-rate Adjusted EBITDA by Q4 2028

  • Company anticipates AI and efficiency initiatives to drive scalability and operating leverage in coming quarters


Result Drivers

  • CUSTOMER WINS - Co said ramp-up of new customer wins drove 26% yr/yr growth in service revenue

  • REVENUE MIX SHIFT - Co said revenue from customers outside of Onity and Rithm grew 96% yr/yr and now represents 72% of service revenue

  • AI AND EFFICIENCY INITIATIVES - Co said AI and other efficiency initiatives began accelerating product development speed and are anticipated to drive scalability and operating leverage


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Miss

$0.13

$0.18 (1 Analyst)

Q3 Loss Per Share

$0.12

Q3 Adjusted Net Income

Miss

$1.52 mln

$2 mln (1 Analyst)

Q3 Adjusted EBITDA

$4.25 mln

Q3 Adjusted Operating Income

Beat

$3.85 mln

$1 mln (1 Analyst)

Q3 Adjusted Pretax Profit

Beat

$2.09 mln

-$900,000 (1 Analyst)


Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the real estate services peer group is "buy"

  • Wall Street's median 12-month price target for Altisource Portfolio Solutions S.A. is $8.00, about 41.6% above its October 28 closing price of $5.65

  • The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago


Reuters Recommended Reads

  • Oct 27 - Real estate data platform CoStar Group's Q3 revenue slightly beats; FY outlook lifted

  • Oct 28 - Invitation Homes Q3 revenue beats estimates on rental rate growth

  • Oct 27 - EssilorLuxottica has clear succession planning for top roles, director says


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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