WAC posted a significant beat this morning and trades at a lower forward P/E than NSM. At NSM's 10x forward P/E, WAC would trade above $50 per share, versus $38 currently. Outlook reaffirmed and positive.
WAC Reports Q1 (Mar) core earnings of $1.50 share, $1.03 better than the Capital IQ Consensus Estimate of $0.47; revenues rose 91.0% year/year to $291.8 mln vs the $267.44 mln consensus.
Based on the overall strong market conditions, robust current pipeline activity and the progress and results of our recent acquisitions, the co reaffirms its previously provided AEBITDA range for 2013 of $650-725 mln. The current economic environment is positive across business lines and is expected to remain so throughout 2013. Sector specific drivers continue to provide strong opportunities for growth. The co continues to see significant activity in the market and dialogue with clients is accelerating after a short lull related to the absorption of the significant first quarter transactions. The co's pipeline of business development opportunities remains strong, totaling ~$300 billion in UPB. The pipeline of portfolios for which we are in exclusive negotiations declined to ~$10 billion in UPB, as one subservicing transaction converted to a signed contract and a second subservicing transaction was withdrawn by the client from the market at this time. The co remains highly confident with respect to the significant levels of subserviced and MSR opportunities in both the current pipeline and in the overall market opportunity over the next 18 to 24 months.