UWM Holdings Q3 adjusted EPS beats estimates

Overview

• U.S. wholesale mortgage lender's Q3 revenue declined year over year

• Adjusted EPS for Q3 beat analyst expectations

• Loan origination volume fell yr/yr amid higher rates

Outlook

• Company did not provide specific financial guidance for the current or future periods

Result Drivers

• LOWER ORIGINATIONS - Co said loan origination volume declined both sequentially and yr/yr due to higher interest rates

• TECHNOLOGY INVESTMENTS - Co said investments in artificial intelligence and technology drove greater efficiencies and helped lower expenses

• BROKER CHANNEL RESILIENCE - Co said the broker channel continued to show strength and resiliency in the quarter

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the consumer lending peer group is "buy."

• Wall Street's median 12-month price target for UWM Holdings Corporation is $1.50, about 5.7% below its November 3 closing price of $1.59

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 4 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)