Mr. Cooper Group (COOP) Misses Q4 EPS by 38c, Revenues Beat

Mr. Cooper Group (NASDAQ: COOP) reported Q4 EPS of $2.00, $0.38 worse than the analyst estimate of $2.38. Revenue for the quarter came in at $953 million versus the consensus estimate of $847.47 million.

• Reported $191 million net income or $2.00 per diluted share
• Generated strong pretax operating income of $329 million, equivalent to a ROTCE of 44.1%
• Tangible book value per share increased to $26.27 from $23.95 in the prior quarter
• Originations segment generated pretax income of $435 million on record funded volume of $24.5 billion, up 57% quarter-over-quarter
• Servicing portfolio grew 7% quarter-over-quarter to $626 billion
• Redeemed $750 million of senior notes with $100 million cash and issued $650 million in new notes at 5.125%, extending liquidity runway to 6 years
• Repurchased 1.4 million shares of common stock for $34 million
• Quarter-end unrestricted cash of $695 million

Chairman and CEO Jay Bray commented, “Strong results in the fourth quarter capped an outstanding year for Mr. Cooper. Despite all the challenges and uncertainties, we never wavered from our focus on the customer, whether it was helping people enter and exit forbearance or save money by refinancing. We enter 2021 with a strong operating and financial momentum, extremely talented and dedicated teammates, and unmatched technology and operational capacity.”

Chris Marshall, Vice Chairman and CFO added, “Consistent cash flow allowed us to continue down the path of deleveraging and refinancing our senior notes, which has not only reduced our funding costs, but also leaves us in the position of having no maturities for six years. The company’s balance sheet has never been in better shape.”

For earnings history and earnings-related data on Mr. Cooper Group (COOP) click here.

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