Investors already are expecting a bad quarter as analysts polled by Thomson Financial, on average, forecast a quarterly loss of $1.57 per share on revenue of $97.8 million. Like the fate of its former parent Countrywide Financial Corp., IndyMac has struggled with declining mortgage origination volume and rising delinquencies and defaults during the second half of 2007.
The company has followed the initial strategy of Countrywide -- prior to accepting an offer from Bank of America Corp. -- by announcing a 24% reduction of its work force. But will these cosmetic changes really help? If the mortgage market doesn't improve soon, IndyMac may have to consider another Countrywide move of selling itself, find a capital infusion or face the ugly prospect of bankruptcy that many of its peers have succumbed to. - Gerald Magpily
Listen to the earnings call 11 AM ET
See Dealscape: Could IndyMac go the way of Countrywide?
See Dealwatch: Subprime meltdown
