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What: Shares of Lender Processing Services (NYS: LPS) , a technology and outsourced service provider to the mortgage industry, fell as much as 14% after releasing its third-quarter results on Monday.
So what: For the quarter, Lender Processing Services reported a profit of $0.71 on a 1% decrease in revenue to $512.7 million. EPS estimates met Wall Street's expectations; however, revenue fell shy of the consensus $514.4 million. Growth in its technology segment was robust, advancing 11.2%, while revenue for the transactions segment demonstrated serious weakness, dipping 7.9%.
Now what: On top of a lackluster earnings report, Lender Processing Services is continuing to settle with states on an individual basis over the ongoing robo-signing foreclosure scandal. With the aftermath of Hurricane Sandy now thrown into the mix and perhaps a third of the country about to see a major decline in new home sales, Lender Processing Services doesn't appear to have a bright outlook over the near term, and it's not a company I'd consider venturing near.
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The article Why Lender Processing Services Shares Were Denied originally appeared on Fool.com.
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