Velocity shares rise after earnings beat
Velocity Financial saw its net income rise in its second quarter financial earnings, beating estimates.
The Westlake Village-based mortgage firm had net income of $9.45 million, or 28 cents per share, well above analysts’ estimates of around 15 cents per share. Velocity Financial more than tripled its net income from the same time a year ago, when it posted a net income of $3.4 million, or 10 cents per share.
Velocity shares closed at $13.26 on Aug. 6, the day after the earnings report, a gain of 8.7% from the previous day.
Chris Farrar, the president and CEO of Velocity, attributed the company’s success to a rebounding economy and changes in housing demand. He also credited higher interest income from strong resolutions of nonperforming loans and portfolio growth.
“Our results this quarter demonstrate the resilience of Velocity’s business model and the ability of our platform to deliver strong financial results,” Farrar said in a news release.