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Mr Cooper (COOP) Up 17.3% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Mr Cooper (COOP - Free Report) . Shares have added about 17.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Mr Cooper due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Mr. Cooper Q2 Earnings & Revenues Miss, Expenses Rise Y/Y
Mr. Cooper Group reported second-quarter 2025 adjusted earnings per share of $3.13, which missed the Zacks Consensus Estimate by 6%. However, the bottom line rose 24.2% year over year.
The increase in expenses was the major headwind for the company in the second quarter. However, improvements in the Servicing and Originations segments provided partial support.
Net income of $198 million in the second quarter declined 2.9% from $204 million a year ago.
Revenues & Expenses
Mr. Cooper's second-quarter total revenues rose 4.3% year over year to $608 million. However, the top line missed the consensus mark by 13.6%.
Total expenses of $330 million grew 10% year over year.
Interest income of $217 million jumped 14.8% year over year. Interest expenses increased 16% year over year to $217 million in the quarter under review.
Segmental Performance
The Servicing segment reported a pre-tax operating income of $332 million, which rose 15.3% year over year in the second quarter due to portfolio growth and strong operating leverage. Total revenues of $434 million fell 4.8% from a year ago. The servicing portfolio increased 25.1% year over year, surpassing the $1.51-trillion mark.
The Originations segment’s pre-tax operating income of $64 million increased 68.4% from a year ago. Total revenues of $158 million in the second quarter rose 47.7% from a year ago. The recapture percentage was 17%, down from 22% a year ago. Funded volume of $9.4 billion increased from the year-ago figure of $3.7 billion.
Financial Position (As of June 30, 2025)
Mr. Cooper exited the second quarter of 2025 with total assets of $18.5 billion, slightly higher than $18.4 billion at the end of the first quarter of 2025. Cash and cash equivalents amounted to $783 million, slightly lower than $784 million at the end of the previous quarter.
Net unsecured senior notes were $4.9 billion, marginally up from the previous quarter. Total liabilities of $13.4 billion at the second-quarter end were lower than $13.6 billion at the end of the first quarter of 2025. Total shareholders’ equity rose from $4.9 billion in the previous quarter to $5.1 billion in the second quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -5.98% due to these changes.
VGM Scores
At this time, Mr Cooper has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Mr Cooper has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Mr Cooper is part of the Zacks Financial - Consumer Loans industry. Over the past month, Ally Financial (ALLY - Free Report) , a stock from the same industry, has gained 0.2%. The company reported its results for the quarter ended June 2025 more than a month ago.
Ally Financial reported revenues of $2.08 billion in the last reported quarter, representing a year-over-year change of +4.1%. EPS of $0.99 for the same period compares with $0.97 a year ago.
For the current quarter, Ally Financial is expected to post earnings of $0.99 per share, indicating a change of +4.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
Ally Financial has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Mr Cooper (COOP) Up 17.3% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Mr Cooper (COOP - Free Report) . Shares have added about 17.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Mr Cooper due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Mr. Cooper Q2 Earnings & Revenues Miss, Expenses Rise Y/Y
Mr. Cooper Group reported second-quarter 2025 adjusted earnings per share of $3.13, which missed the Zacks Consensus Estimate by 6%. However, the bottom line rose 24.2% year over year.
The increase in expenses was the major headwind for the company in the second quarter. However, improvements in the Servicing and Originations segments provided partial support.
Net income of $198 million in the second quarter declined 2.9% from $204 million a year ago.
Revenues & Expenses
Mr. Cooper's second-quarter total revenues rose 4.3% year over year to $608 million. However, the top line missed the consensus mark by 13.6%.
Total expenses of $330 million grew 10% year over year.
Interest income of $217 million jumped 14.8% year over year. Interest expenses increased 16% year over year to $217 million in the quarter under review.
Segmental Performance
The Servicing segment reported a pre-tax operating income of $332 million, which rose 15.3% year over year in the second quarter due to portfolio growth and strong operating leverage. Total revenues of $434 million fell 4.8% from a year ago. The servicing portfolio increased 25.1% year over year, surpassing the $1.51-trillion mark.
The Originations segment’s pre-tax operating income of $64 million increased 68.4% from a year ago. Total revenues of $158 million in the second quarter rose 47.7% from a year ago. The recapture percentage was 17%, down from 22% a year ago. Funded volume of $9.4 billion increased from the year-ago figure of $3.7 billion.
Financial Position (As of June 30, 2025)
Mr. Cooper exited the second quarter of 2025 with total assets of $18.5 billion, slightly higher than $18.4 billion at the end of the first quarter of 2025. Cash and cash equivalents amounted to $783 million, slightly lower than $784 million at the end of the previous quarter.
Net unsecured senior notes were $4.9 billion, marginally up from the previous quarter. Total liabilities of $13.4 billion at the second-quarter end were lower than $13.6 billion at the end of the first quarter of 2025. Total shareholders’ equity rose from $4.9 billion in the previous quarter to $5.1 billion in the second quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -5.98% due to these changes.
VGM Scores
At this time, Mr Cooper has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Mr Cooper has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Mr Cooper is part of the Zacks Financial - Consumer Loans industry. Over the past month, Ally Financial (ALLY - Free Report) , a stock from the same industry, has gained 0.2%. The company reported its results for the quarter ended June 2025 more than a month ago.
Ally Financial reported revenues of $2.08 billion in the last reported quarter, representing a year-over-year change of +4.1%. EPS of $0.99 for the same period compares with $0.97 a year ago.
For the current quarter, Ally Financial is expected to post earnings of $0.99 per share, indicating a change of +4.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
Ally Financial has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.