COOP Earnings Prediction
The chart below shows how COOP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, COOP sees a -2.87% change in stock price 10 days leading up to the earnings, and a +0.78% change 10 days following the report. On the earnings day itself, the stock moves by +1.95%. This data can give you a slight idea of what to expect for the next quarter's release.
COOP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
654.00M
61.88%
54.25%
Gross Margin
--
--
--
Operating Margin
44.65%
119.95%
82.02%
Net Margin
31.19%
173.84%
65.29%
EPS
3.14
355.07%
157.38%
No Data Available
COOP Earnings Analysis
Mr Cooper Group Inc Corporation (COOP.O) Earnings Conference Call
Positive
Strong Financial Performance: Pretax operating income reached $235 million, with an operating ROTCE of 15.8%, demonstrating strong financial performance.
Tangible Book Value Growth: Tangible book value increased by 12% year over year to $71.61 per share, reflecting solid growth in shareholder equity.
Servicing Segment Profit Surge: Servicing segment generated $318 million in pretax income, up 39% year over year, indicating robust operational efficiency and profitability.
Acquisition Impact on Scale: The acquisition of Flagstar added $275 billion in UPB, significantly enhancing scale and market position, making Mr. Cooper the largest servicer in the U.S.
Service Fee Income Growth: Fee income from service-related businesses totaled $500 million, contributing over 20% to total revenue and growing at a double-digit pace for the last three years.
Negative
Liquidity Decline: Liquidity decreased to $3,400,000,000 from $4,100,000,000 in the previous quarter, indicating a significant reduction in available cash resources.
Capital Ratio Decline: The capital ratio fell to 24.4% from 27.9%, reflecting an increase in MSR assets and higher loans held for sale, which may raise concerns about financial stability.
High Operational Costs: Corporate segment expenses reached $51,000,000, with expectations to remain at this level in the first quarter, indicating ongoing high operational costs.
Facility Shutdown Costs Impact: A $22,000,000 charge for facility shutdown costs was incurred, highlighting the impact of restructuring efforts on financial performance.
Refinance Recapture Rate Decline: The refinance recapture rate dropped to 35%, significantly below the expected 53%, suggesting challenges in retaining refinancing business.
COOP FAQs
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COOP Earning Call Sentiment
Earnings call transcript: Mr. Cooper Group beats Q4 2024 earnings estimates
COOP.O
-1.26%Positive
The earnings call highlights strong financial performance, including record servicing income and growth in tangible book value. The company shows resilience with strategic investments in AI and digital platforms, despite liquidity concerns. The shareholder return plan and active stock buyback program are positive signals. The Q&A reveals confidence in sustaining growth and driving efficiencies. However, regulatory and competitive risks are acknowledged. The overall sentiment is positive, with potential for a 2%-8% stock price increase, considering the company's strategic initiatives and market position.
