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 -4.12% change in stock price 10 days leading up to the earnings, and a +0.59% change 10 days following the report. On the earnings day itself, the stock moves by +3.02%. 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
424.00M
-26.13%
-27.27%
Gross Margin
--
--
--
Operating Margin
24.53%
-49.89%
-50.68%
Net Margin
18.87%
-60.61%
-46.07%
EPS
1.22
-69.95%
-60.65%
No Data Available
COOP Earnings Analysis
Mr. Cooper Group Inc. Common Stock Corporation (COOP.O) Earnings Conference Call
Positive
Strong Operating Performance: We produced a very solid quarter with pre-tax operating income of $246 million and operating ROTCE of 16.8%, which is at the upper end of our guidance.
Tangible Book Value Increase: Tangible book value grew 11% year-over-year to $69.93 per share.
Strong Balance Sheet Health: Our balance sheet remains in strong shape, with a capital ratio of 27.9% and liquidity at a record high of $4.1 billion.
Servicing Portfolio Expansion: We grew the servicing portfolio to $1.2 trillion, which represents 5.4 million customers and generated $305 million in pre-tax servicing income, thanks to continued strong operating leverage.
Originations Segment Performance: Our originations segment generated $69 million of pre-tax income, which significantly exceeded our guidance.
Negative
Operating Income Decline: Operating income decreased by 12% year-over-year to $246 million, indicating a decline in profitability.
Customer Growth Decline: Customer growth slowed, with only 5.4 million new customers added, down from previous quarters.
Increased Operating Expenses: Operating expenses increased by 15%, leading to a tighter margin and reduced overall profitability.
Segment Revenue Shortfall: Segment revenue for the original segment fell short of guidance, generating only $69 million in pre-tax income instead of the expected $85 million.
Projected ROTCE Decline: The company anticipates a lower ROTCE of 14% to 18% for 2025, reflecting potential challenges in maintaining profitability.
COOP FAQs
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COOP Earning Call Sentiment
Mr. Cooper Group Inc. (COOP) Q3 2024 Earnings Call Transcript
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00:00
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COOP.O
-3.03%Positive
The earnings call summary presents a positive outlook with strong financial performance and strategic initiatives. Despite some risks, such as integration challenges with the Flagstar acquisition and market volatility, the company's operational efficiency and shareholder return plans are strong positives. The Q&A section shows management's optimism about growth opportunities, particularly in the direct-to-consumer business and correspondent market. The stock repurchase program and strong servicing income further enhance the positive sentiment. Overall, the company's strategic positioning and financial health suggest a positive stock price movement over the next two weeks.