Velocity Financial Handily Beats Expectations

Velocity Financial Inc. beat Wall Street estimates on earnings and revenue in the fourth quarter. The Westlake Village alternative lender for small apartment and commercial properties on Tuesday reported adjusted net income of $9.6 million (29 cents a share) for the quarter ending Dec. 31, compared with net income of $5.2 million (44 cents) in the same period a year earlier. Revenue increase 25 percent to $24.5 million. Analysts on average expected earnings equal to 13 cents a share on revenue of $17.8 million, according to Thomson Financial Network. Chief Executive Chris Farrar said the fourth quarter marked a turning point in Velocity’s emergence from the effects of the pandemic. The strength of the business model was reflected in the excellent operating results despite the economic stress of last year, Farrar said in a statement. “We have continued to drive momentum in our production activities as we move into 2021, and looking forward, we expect to organically grow originations and opportunistically evaluate other areas to deploy capital profitably,” he added. Velocity went public in January of last year.Shares in Velocity (VEL) closed up 15 cents, or about 1.8 percent, to $8.70 on the New York Stock Exchange Tuesday, a day when the Dow Jones industrial average closed down 0.4 percent and the Nasdaq closed up at a fraction of a percent.