Back to top

Analyst Blog

Zacks Equity Research

Lender Processing CEO Resigns

FIS

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Lender Processing Services Inc , a provider of integrated technology and outsourced services to the mortgage lending industry in the United States, recently announced that its Chief Executive Officer (CEO) and President Jeffrey S. Carbiener has stepped down citing health issues.

Jeffrey has served as the President and CEO of Lender Processing since its spin-off from the parent company Fidelity National Information Services, Inc (FIS - Analyst Report) in July 2008.

Jeffrey played a key role in the development of the company since its formation and has also navigated Lender Processing through the economic slowdown quite impressively. During his tenure of three years the company scaled new heights. We believe the task of finding a suitable successor for Jeffrey will be very difficult for the company.

Until a permanent CEO is selected, Lee A. Kennedy, the executive chairman of the company and the former CEO of Fidelity National will serve as the interim CEO and president. Jeffrey, however, will remain in the company in an advisory capacity.

In mid June, Lender Processing reduced its second quarter 2011 adjusted earnings outlook to 54 cents–56 cents from 79 cents–82 cents due to a further drop in default volume and origination activities, particularly for refinancing. Additionally, higher regulatory and legal expenses forced the company to lower its outlook. The company also expects second quarter revenue to plunge 8% sequentially.

Moreover, market conditions for origination and default businesses are expected to remain challenging for the rest of the year. Thus, the departure of Jeffery at this critical juncture will further add to the uncertainly. 

The company’s search for the new CEO has begun, but as long as the new CEO is not appointed we prefer to remain on the sidelines. Consequently, we maintain our long-term Underperform recommendation on the stock. Lender Processing currently retains a Zacks #5 Rank (short-term Strong Sell rating).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%