Mortgage servicing company Mr. Cooper Group (NASDAQ:COOP) will be reporting earnings this Wednesday before market open. Here’s what you need to know.
Mr. Cooper Group missed analysts’ revenue expectations by 9.1% last quarter, reporting revenues of $560 million, flat year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ tangible book value per share estimates and EPS in line with analysts’ estimates.
Is Mr. Cooper Group a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Mr. Cooper Group’s revenue to grow 16.6% year on year to $679.7 million, slowing from the 20% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.22 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Mr. Cooper Group has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Mr. Cooper Group’s peers in the banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AGNC Investment’s revenues decreased 367% year on year, missing analysts’ expectations by 141%, and Citigroup reported revenues up 8%, topping estimates by 3.5%. Citigroup traded up 2.9% following the results.
Read our full analysis of AGNC Investment’s results here and Citigroup’s results here.
There has been positive sentiment among investors in the banks segment, with share prices up 7.8% on average over the last month. Mr. Cooper Group is up 6.3% during the same time and is heading into earnings with an average analyst price target of $148.14 (compared to the current share price of $161.99).
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