Q2 2024 Mr Cooper Group Inc Earnings Call Transcript
Key Points
- Mr. Cooper Group Inc (COOP) reported a 46% year-over-year increase in pretax operating income, reaching $219 million.
- The company achieved a 17% year-over-year increase in tangible book value (TBV), now at $68.67 per share.
- The servicing team delivered exceptional results with $288 million in pretax income, up 58% from the previous year.
- The acquisition of Flagstar's mortgage operations is expected to enhance scale and operational leverage.
- The company maintained a strong balance sheet with a capital ratio above the stated target range and ample liquidity.
- The originations environment remains challenging, with pretax operating income at $38 million, despite being at the high end of guidance.
- Amortization expense increased by $47 million sequentially, reflecting portfolio growth and seasonality.
- The company anticipates macroeconomic headwinds in 2025, including rising amortization and lower deposit yields.
- The integration of Flagstar's operations will add new team members and expenses, potentially impacting short-term efficiency.
- The company expects amortization expense to be a headwind in 2025 due to record low CPRs likely increasing.
Good day and thank you for standing by. Welcome to the Mr. Cooper Group Q2 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker at Mr. Cooper Group. Please go ahead.
Good morning and welcome to Mr. Cooper Group's second-quarter earnings call. My name is Ken Posner, and I'm SVP of Strategic Planning and Investor Relations. With me today are Jay Bray, Chairman and CEO; Mike Weinbach, President; and Kurt Johnson, Executive Vice President and CFO.
As a reminder, this call is being recorded. You can find the slides on our Investor Relations web page at investors.mrcoopergroup.com.
During the call, we may refer to non-GAAP measures, which are reconciled to GAAP results in the appendix to the slide deck. Also, we may make forward-looking statements, which you should understand could be affected by risk factors
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
