Stonegate shares shellacked after third-quarter loss

Shares of Stonegate Mortgage Corp. sank 18 percent in trading Thursday after the firm reported third-quarter losses of $1.7 million and missed Wall Street estimates by a wide margin.

The firm's earnings report contained a mirror image of its net result in the third quarter of 2013, when it reported profit of $1.7 million. On a per share basis, the Indianapolis-based non-bank mortgage firm lost seven cents a share in the most recent quarter, as opposed to a gain of 10 cents per share in the third quarter of last year.

Excluding items such as valuations on mortgage servicing rights, Stonegate had a net income of $4.1 million, or 15 cents a share. Analysts polled by Thompson Reuters anticipated adjusted earnings of 41 cents a share.

Shares had fallen $2.29 by early afternoon, to $11.45.

Stonegate originates, finances and services mortgages across the country. Its revenues nearly doubled to $63 million in the quarter, versus $31.9 million in the year-ago period. Still, analysts had forecast revenues of $77.6 million at the consensus point.

A few third-quarter bright spots came in the company’s unpaid principal balance portfolio, which grew 82 percent from the year-ago period to $17.7 billion, and in loan origination, which grew 51 percent from last year to $3.5 billion.

“We continue to make progress on our strategic initiatives, in spite of the industry headwinds and interest rate volatility,” Stonegate CEO Jim Cutillo said in prepared remarks.