UWMC Earnings Prediction
The chart below shows how UWMC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, UWMC sees a -5.37% change in stock price 10 days leading up to the earnings, and a -0.77% change 10 days following the report. On the earnings day itself, the stock moves by +2.93%. This data can give you a slight idea of what to expect for the next quarter's release.
UWMC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
947.52M
84.21%
58.81%
Gross Margin
--
--
--
Operating Margin
65.38%
11.15%
29.57%
Net Margin
3.37%
-94.24%
-73.65%
EPS
-0.06
-140.00%
-300.00%
No Data Available
UWMC Earnings Analysis
UWM Holdings Corporation Corporation (UWMC.N) Earnings Conference Call
Positive
Record Quarterly Production: 1. Record Total Production: UWM Holdings achieved $39.5 billion in total production for Q3 2024, marking the largest quarterly production in three years and exceeding guidance significantly.
Purchase Production Surge: 2. Dominant Purchase Production: The company reported over $26 billion in purchase production during the quarter, contributing to a 300% growth in purchase market share since 2019.
Year-to-Date Production Growth: 3. Strong Year-to-Date Performance: Year-to-date total production volume reached $100.8 billion, representing a 20% increase compared to the same period in 2023, with gain margin rising to 111 basis points from 92 basis points last year.
Strong Cash Reserves: 4. Robust Cash Position: UWM ended Q3 with over $600 million in cash and total accessible liquidity of approximately $2.5 billion, ensuring ample resources for future market opportunities.
Strong Operational Profitability: 5. Consistent Profitability: The company generated a net income of nearly $32 million in Q3, demonstrating operational profitability despite a $446 million decline in the fair value of MSRs, showcasing the strength of its business model.
Negative
MSR Value Decline: 1. Significant Decline in MSR Value: UWM reported a $446 million decline in the fair value of mortgage servicing rights (MSRs), which negatively impacted net income despite a reported profit of $32 million.
Home Sales Decline Forecast: 2. Lower Home Sales Forecast: The company noted that 2024 is projected to be the lowest year for existing home sales since 1995, which could hinder future growth opportunities.
Refi Market Challenges: 3. Refi Market Not Fully Materialized: Although UWM experienced a strong refi quarter with $13.3 billion, the overall refi market has not fully materialized, indicating potential future revenue challenges.
Broker Channel Competition: 4. Increased Competition in Broker Channel: Despite UWM's stronghold, there are indications of increased competition within the broker channel, which could pressure margins and market share.
Q4 Production Guidance Lowered: 5. Guidance for Q4 Production Lowered: UWM guided for Q4 production to be between $34 billion and $41 billion, reflecting a slowdown in the market and potential challenges in maintaining previous growth levels.
UWMC FAQs
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UWMC Earning Call Sentiment
UWM Holdings Corporation (UWMC) Q3 2024 Earnings Call Transcript
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00:00
00:00
UWMC.N
0%Positive
The earnings call reflects strong financial performance with record production and increased gain margins, despite market challenges. The Q&A session highlighted management's optimism for future growth, driven by strategic investments and market positioning. Concerns were minimal, with management addressing most analyst inquiries confidently. The positive guidance and strong liquidity position further bolster the outlook. These factors suggest a positive sentiment towards the stock price movement in the short term.
