PHH Corporation - Momentum
2012年10月11日 - 9:00AM
Zacks
Positive earnings estimate revisions heading into the third quarter
earnings release helped
PHH Corporation (PHH) hit a new
52-week high and achieve a Zacks #1 Rank (Strong Buy) on October 9.
With a solid year-to-date return of 95.3% and an expected long-term
earnings growth rate of 6%, this provider of business process
management services offers an attractive investment opportunity.
Q3 Release Coming Up
PHH Corporation is expected to release its third quarter
earnings on October 29. The Zacks Consensus Estimates are for
earnings of 66 cents per share on revenue of $702.0 million. The
company has surpassed profit expectations in two out of the last
four quarters.
On August 7, PHH Corporation reported second quarter 2012
earnings of 49 cents per share, which fell short of the Zacks
Consensus Estimate and last year’s result. Escalated total expenses
were partially offset by higher net revenues recorded.
Net revenues increased 8.3% year over year to $559.0 million.
Mortgage fees climbed to $83.0 million from $56.0 million in the
year-ago quarter. However, fleet lease income contracted marginally
to $338.0 million. Additionally, the company's total expenses
jumped 9.8% to $639.0 million over the same period.
Earnings Momentum on the Rise
The Zacks Consensus Estimate for 2012 advanced 2.9% to $2.80 per
share over the last 60 days. For 2013, the Zacks Consensus Estimate
climbed 10.3% to $2.35 per share.
Valuation Looks Attractive
PHH Corporation currently trades at 7.9x 12-month forward
earnings, a 13% discount to the peer group average of 9.1x. Its
price to book ratio of 0.8 is at a 47% discount to the peer group
average of 1.5.
The company has a trailing 12-month ROE of 13.3%, compared with
the peer group average of 10.9%. This implies that the company
reinvests its earnings more efficiently than its peer group.
Chart Shows Strength
PHH Corporation has witnessed strong price momentum since August
8. Moreover, the company has been continuously outperforming its
200-day and 50-day moving averages since August 2012. The
year-to-date return for the stock is 95.3%, compared with the
S&P 500’s return of 14.6%.
![](http://www.zacks.com/images/upload_dir/1349889114.jpg)
Headquartered in Mount Laurel, New Jersey, PHH Corporation
provides business process management services for the mortgage and
fleet industries in the United States and Canada. The company was
founded in 1946 and had over 580,000 automobiles and trucks under
management in both sales and service fleets as of June 30, 2012.
With a market capital of about $1.27 billion, PHH Corporation
competes with Ocwen Financial Corp. (OCN), among others.
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Phh (NYSE:PHH)
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