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LoanDepot Q3 sales misses estimates on lower volumes

By Reuters News


Overview

  • U.S. mortgage lender's Q3 adjusted revenue fell 2% sequentially, missing analyst expectations

  • Company completed $10 bln sale of Agency mortgage servicing rights, boosting liquidity

  • LoanDepot repurchased $87 mln of senior notes, reducing net debt obligations


Outlook

  • LoanDepot expects Q4 origination volume between $4.5 bln and $6.5 bln

  • Company sees Q4 pull-through weighted rate lock volume between $3.25 bln and $5.25 bln

  • LoanDepot forecasts Q4 pull-through weighted gain on sale margin of 425-465 basis points


Result Drivers

  • HOME EQUITY LENDING SHIFT - Co said higher unit volume and stronger margins were driven by expansion of home equity lending products, despite lower overall origination volume

  • MARGIN IMPROVEMENT - Gain on sale margin rose due to a shift toward higher-margin home equity loans

  • COST SAVINGS INITIATIVES - Operating leverage improved as expenses fell more than adjusted revenue, reflecting productivity initiatives and a more efficient product mix


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$307.15 mln

Q3 Adjusted Revenue

Miss

$302.21 mln

$330.32 mln (3 Analysts)

Q3 Loss Per Share

$0.08

Q3 Adjusted Net Loss

Miss

$30.83 mln

$55,000 (2 Analysts)

Q3 Net Loss

$28.69 mln

Q3 Adjusted EBITDA

$16.92 mln


Analyst Coverage

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

  • Wall Street's median 12-month price target for loanDepot, Inc. is $1.13, about 75.8% above its November 6 closing price of $0.64


Reuters Recommended Reads

  • Nov 6 - Humana lifts annual profit forecast as medical costs ease


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.)

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