Guild Holdings Company Reports Q2 2024 Financial Results
Intellectia.AI1970-01-01
Guild Holdings Company Reports Q2 2024 Financial Results
Guild Holdings Company (NYSE: GHLD), a growth-oriented mortgage company, reported its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | YoY % Change | QoQ % Change | Consensus Estimates |
|---|---|---|---|---|---|---|
| Total Revenue | $285.7M | $224.23M | N/A | N/A | 27.44% | $254.22M |
| Net Income Attributable to Guild | $37.6M | N/A | N/A | N/A | N/A | N/A |
| Adjusted Net Income | $30.7M | N/A | N/A | N/A | N/A | N/A |
| Earnings Per Share (EPS) | N/A | N/A | N/A | N/A | N/A | $0.27 |
Guild Holdings posted strong performance for the second quarter, with total revenue surpassing consensus estimates by $31.48 million and a notable quarter-over-quarter increase. The company achieved a net income of $37.6 million, reflecting the successful execution of its growth strategy and operational efficiencies.
Revenue Performance by Segment
| Segment | Q2 2024 | Q1 2024 | Q2 2023 | Previous Guidance |
|---|---|---|---|---|
| Origination Segment | -$3.1M | -$24.2M | N/A | N/A |
| Servicing Segment | $69.5M | $83.9M | N/A | N/A |
| Gain on Sale Margin | 326 bps | 364 bps | N/A | N/A |
In the origination segment, Guild's net loss narrowed significantly quarter-over-quarter, driven by higher origination volumes. However, the gain on sale margins decreased by 38 bps. In the servicing segment, net income declined from the prior quarter primarily due to lower gains from MSR valuation adjustments.
Key Operational Data
| Operational Data | Q2 2024 | Q1 2024 |
|---|---|---|
| Originations | $6.5B | $4.6B |
| Purchase Origination Percentage | 92% | N/A |
| MSR Valuation Adjustments | $2.1M | $20.8M |
| Purchase Recapture Rate | 27% | N/A |
Guild Holdings reported a significant increase in originations, 69% higher quarter-over-quarter, highlighting its robust market share gains. The purchase origination percentage remained high at 92%.
Comments from Guild Officers
Terry Schmidt, Guild CEO, remarked, "[Our] second quarter results demonstrate Guild's highly successful strategy to increase market share, by investing in people and technology, to drive growth in our originations and servicing portfolio. Our continued ability to execute effectively in a challenging market environment is illustrated by our origination volume increasing 69% quarter-over-quarter, compared to 14% for the industry, a strong indicator of our ability to take market share."
Share Repurchase Program and Dividends
During Q2 2024, Guild repurchased and retired 14,221 shares at an average price of $14.09 per share, leaving $10.7 million available under its repurchase program. Additionally, a special cash dividend of $0.50 per share was declared on May 8, 2024, and paid on June 6, 2024.
Forward Guidance
The earnings release did not include specific forward guidance but emphasized ongoing investments in technology, selective acquisitions, and market share growth.
Stock Price Movement
Post-earnings announcement, Guild Holdings' stock price surged by 10.40%.
For more detailed information, please refer to Guild Holdings Company’s official press release and webcast replay available on its investor relations website.
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