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Mr. Cooper Q4 Earnings Surpass Estimates, Expenses Increase Y/Y
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Mr. Cooper Group Inc. (COOP - Free Report) reported fourth-quarter 2024 adjusted earnings per share of $2.73, which beat the Zacks Consensus Estimate by 5.8%. The bottom line rose 59.6% year over year.
Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.
Solid improvements in the Servicing and Originations segments were major tailwinds for the company in the fourth quarter. The servicing portfolio increased year over year, surpassing the $1.56-trillion mark. However, a decline in revenues and an increase in expenses were spoilsports.
Net income of $204 million in the fourth quarter increased significantly from $46 million a year ago.
For 2024, adjusted earnings per share were $10.19, which beat the Zacks Consensus Estimate of $10.18. The metric rose from $7.30 in 2023. Net income of $669 million rose 33.8% from 2023 reported figure.
COOP’s Revenues & Expenses
Mr. Cooper's fourth-quarter total revenues declined 49.5% year over year to $654 million. The top line missed the consensus mark by 11.6%.
For the full year, total revenues were $2.22 billion, which topped the Zacks Consensus Estimate of $2.18 billion. The metric rose 89.8% from 2023.
Total expenses of $367 million grew 10.5% year over year.
Interest income of $216 million jumped 35.8% year over year. Interest expenses increased 38.4% year over year to $220 million in the quarter under review.
Mr. Cooper's Segmental Performance
The Servicing segment reported a pre-tax operating income of $318 million, which rose 38.9% year over year in the fourth quarter due to portfolio growth and strong operating leverage. Total revenues of $502 million grew 58.9% from a year ago. The servicing portfolio increased 57% year over year, surpassing the $1.56-trillion mark.
The Originations segment’s pre-tax operating income of $47 million increased significantly from $10 million a year ago. Total revenues of $135 million in the fourth quarter rose from $67 million a year ago. The recapture percentage was 21%, down from 22% a year ago. Funded volume of $9.3 billion increased from the year-ago figure of $2.7 billion.
COOP's Financial Position (As of Dec. 31, 2024)
Mr. Cooper exited the fourth quarter with total assets of $18.9 billion, higher than $16.2 billion at the end of the third quarter of 2024. Cash and cash equivalents amounted to $753 million, higher than $733 million at the end of the previous quarter.
Net unsecured senior notes were at $4.9 billion, marginally up from the previous quarter’s $4.8 billion. Total liabilities of $14.1 billion at the fourth-quarter end were higher than $11.5 billion at the end of third-quarter 2024. Total shareholders’ equity rose from $16.2 billion in the previous quarter to $18.9 billion in the fourth quarter.
Mr. Cooper’s Capital Deployment Update
The company bought back 0.4 million shares for $38 million in the quarter under review.
Our View on COOP
Mr. Cooper ended the fourth quarter on a strong note, with a strong performance in the Originations and Servicing segment. A solid balance sheet position is an added advantage. The company’s strong operations, rising profits and shareholder-value-boosting efforts are likely to support its financials in the upcoming period.
MR. COOPER GROUP INC Price, Consensus and EPS Surprise
Capital One’s (COF - Free Report) fourth-quarter 2024 adjusted earnings of $3.09 per share handily surpassed the Zacks Consensus Estimate of $2.66. The bottom line also compared favorably with $2.24 in the prior-year quarter.
COF’s results gained from higher net interest income and non-interest income, and increased loans and deposits. Also, provisions declined in the quarter. However, a rise in expenses was an undermining factor.
Navient Corporation (NAVI - Free Report) reported fourth-quarter 2024 adjusted earnings per share of 25 cents, surpassing the Zacks Consensus Estimate of 20 cents. It recorded earnings of 70 cents in the prior-year quarter.
Results were driven by a rise in other income and lower expenses. A decline in provision for loan losses was another positive. However, a decrease in net interest income was a headwind.
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Mr. Cooper Q4 Earnings Surpass Estimates, Expenses Increase Y/Y
Mr. Cooper Group Inc. (COOP - Free Report) reported fourth-quarter 2024 adjusted earnings per share of $2.73, which beat the Zacks Consensus Estimate by 5.8%. The bottom line rose 59.6% year over year.
Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.
Solid improvements in the Servicing and Originations segments were major tailwinds for the company in the fourth quarter. The servicing portfolio increased year over year, surpassing the $1.56-trillion mark. However, a decline in revenues and an increase in expenses were spoilsports.
Net income of $204 million in the fourth quarter increased significantly from $46 million a year ago.
For 2024, adjusted earnings per share were $10.19, which beat the Zacks Consensus Estimate of $10.18. The metric rose from $7.30 in 2023. Net income of $669 million rose 33.8% from 2023 reported figure.
COOP’s Revenues & Expenses
Mr. Cooper's fourth-quarter total revenues declined 49.5% year over year to $654 million. The top line missed the consensus mark by 11.6%.
For the full year, total revenues were $2.22 billion, which topped the Zacks Consensus Estimate of $2.18 billion. The metric rose 89.8% from 2023.
Total expenses of $367 million grew 10.5% year over year.
Interest income of $216 million jumped 35.8% year over year. Interest expenses increased 38.4% year over year to $220 million in the quarter under review.
Mr. Cooper's Segmental Performance
The Servicing segment reported a pre-tax operating income of $318 million, which rose 38.9% year over year in the fourth quarter due to portfolio growth and strong operating leverage. Total revenues of $502 million grew 58.9% from a year ago. The servicing portfolio increased 57% year over year, surpassing the $1.56-trillion mark.
The Originations segment’s pre-tax operating income of $47 million increased significantly from $10 million a year ago. Total revenues of $135 million in the fourth quarter rose from $67 million a year ago. The recapture percentage was 21%, down from 22% a year ago. Funded volume of $9.3 billion increased from the year-ago figure of $2.7 billion.
COOP's Financial Position (As of Dec. 31, 2024)
Mr. Cooper exited the fourth quarter with total assets of $18.9 billion, higher than $16.2 billion at the end of the third quarter of 2024. Cash and cash equivalents amounted to $753 million, higher than $733 million at the end of the previous quarter.
Net unsecured senior notes were at $4.9 billion, marginally up from the previous quarter’s $4.8 billion. Total liabilities of $14.1 billion at the fourth-quarter end were higher than $11.5 billion at the end of third-quarter 2024. Total shareholders’ equity rose from $16.2 billion in the previous quarter to $18.9 billion in the fourth quarter.
Mr. Cooper’s Capital Deployment Update
The company bought back 0.4 million shares for $38 million in the quarter under review.
Our View on COOP
Mr. Cooper ended the fourth quarter on a strong note, with a strong performance in the Originations and Servicing segment. A solid balance sheet position is an added advantage. The company’s strong operations, rising profits and shareholder-value-boosting efforts are likely to support its financials in the upcoming period.
MR. COOPER GROUP INC Price, Consensus and EPS Surprise
MR. COOPER GROUP INC price-consensus-eps-surprise-chart | MR. COOPER GROUP INC Quote
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Consumer Loan Providers
Capital One’s (COF - Free Report) fourth-quarter 2024 adjusted earnings of $3.09 per share handily surpassed the Zacks Consensus Estimate of $2.66. The bottom line also compared favorably with $2.24 in the prior-year quarter.
COF’s results gained from higher net interest income and non-interest income, and increased loans and deposits. Also, provisions declined in the quarter. However, a rise in expenses was an undermining factor.
Navient Corporation (NAVI - Free Report) reported fourth-quarter 2024 adjusted earnings per share of 25 cents, surpassing the Zacks Consensus Estimate of 20 cents. It recorded earnings of 70 cents in the prior-year quarter.
Results were driven by a rise in other income and lower expenses. A decline in provision for loan losses was another positive. However, a decrease in net interest income was a headwind.