Altisource Asset Management Corp. :AAMC-US: Earnings Analysis: Q3, 2016 By the Numbers : November 9, 2016

Altisource Asset Management Corp. reports financial results for the quarter ended September 30, 2016.

We analyze the earnings along side the following peers of Altisource Asset Management Corp. – Altisource Residential Corp. Class B, Orchid Island Capital, Inc., Redwood Trust, Inc., Capstead Mortgage Corporation, Two Harbors Investment Corp. and Annaly Capital Management, Inc. (RESI-US, ORC-US, RWT-US, CMO-US, TWO-US and NLY-US) that have also reported for this period.

Highlights

  • Summary numbers: Revenues of USD 5.10 million, Net Earnings of USD -1.12 million.
  • Narrowing of operating margins contributed to decline in earnings.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2015-06-30 2015-09-30 2015-12-31 2016-03-31 2016-09-30
Relevant Numbers (Quarterly)
Revenues (mil) 21.91 17.11 52.15 4.82 5.1
Revenue Growth (%YOY) 99.15 0.26 105.72 -71.93 -76.71
Earnings (mil) 0.69 -2.03 -8.99 -0.99 -1.12
Earnings Growth (%YOY) -94.76 -111.48 -141.02 -114.51 -261.9
Net Margin (%) 3.16 -11.88 -17.24 -20.58 -21.99
EPS 0.27 -0.92 -4.2 -0.5 -0.67
Return on Equity (%) 0.2 -0.61 -2.86 -0.62 -7.19
Return on Assets (%) 0.1 -0.29 -1.35 -0.31 -6.69

Access our Ratings and Scores for Altisource Asset Management Corp.

Market Share Versus Profits

Revenues History
Earnings History

AAMC-US‘s change in revenue this period compared to the same period last year of -76.71% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that AAMC-US is holding onto its market share. Also, for comparison purposes, revenues changed by 5.85% and earnings by -13.10% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Margins

The company’s decline in earnings has been influenced by the following factors: (1) Decline in operating margins (EBIT margins) from 32.98% to -18.23% and (2) one-time items that contributed to a decrease in pretax margins from 64.04% to -18.23%

EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables
EBIT Margin History
PreTax Margin History

Access our Ratings and Scores for Altisource Asset Management Corp.

Company Profile

Altisource Asset Management Corp. engages in the provision of portfolio management and governance services to investment vehicles that acquire and own residential properties. The company was founded on March 15, 2012 and is headquartered in Christiansted, Virgin Islands.

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