Core Viewpoint - Mr. Cooper Group Inc. demonstrated strong financial performance in the fourth quarter of 2024, with adjusted earnings per share surpassing estimates and significant year-over-year growth in net income, driven by improvements in the Servicing and Originations segments [1][2][12]. Financial Performance - Adjusted earnings per share for Q4 2024 were $2.73, exceeding the Zacks Consensus Estimate by 5.8%, and reflecting a 59.6% increase year over year [1] - Net income for Q4 2024 was $204 million, a substantial rise from $46 million in the same quarter last year [2] - For the full year 2024, adjusted earnings per share reached $10.19, beating the consensus estimate of $10.18, and up from $7.30 in 2023 [3] Revenue and Expenses - Total revenues for Q4 2024 declined by 49.5% year over year to $654 million, missing the consensus mark by 11.6% [4] - Full-year revenues were $2.22 billion, exceeding the Zacks Consensus Estimate of $2.18 billion, and representing an 89.8% increase from 2023 [4] - Total expenses in Q4 2024 grew by 10.5% year over year to $367 million [4] Segment Performance - The Servicing segment reported a pre-tax operating income of $318 million, up 38.9% year over year, with total revenues of $502 million, a 58.9% increase from the previous year [6] - The Originations segment's pre-tax operating income rose to $47 million from $10 million a year ago, with total revenues of $135 million, up from $67 million [7] Financial Position - As of December 31, 2024, total assets were $18.9 billion, an increase from $16.2 billion at the end of Q3 2024 [8] - Cash and cash equivalents amounted to $753 million, up from $733 million in the previous quarter [8] - Total liabilities increased to $14.1 billion from $11.5 billion at the end of Q3 2024, while total shareholders' equity rose to $18.9 billion from $16.2 billion [9] Capital Deployment - The company repurchased 0.4 million shares for $38 million during the quarter [10]

Financial Data and Key Metrics Changes - Pre-tax operating income was $235 million, with operating ROTCE at 15.8% [5][48] - Tangible book value increased by 12% year-over-year to $71.61 per share, and the capital ratio was 24.4% [5][56] - Liquidity decreased to $3.4 billion from $4.1 billion in the previous quarter [56] Business Line Data and Key Metrics Changes - The Servicing segment generated $318 million in pre-tax income, up 39% year-over-year [7][25] - Originations produced $47 million in EBT, with funded volumes growing 38% sequentially [7][37] - Fee income from subservicing and other services contributed over 20% of total revenue, totaling $500 million for 2024 [46] Market Data and Key Metrics Changes - The company became a top five correspondent lender, significantly improving market share from the previous year [38][105] - The acquisition of Flagstar added $275 billion in UPB in the fourth quarter [30] Company Strategy and Development Direction - The company aims to focus on unit costs, invest in origination platforms, grow fee revenues, and analyze acquisition opportunities [23][24] - The strategic direction includes leveraging technology to enhance customer experience and operational efficiency [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a ROTCE guidance range of 16% to 20% for 2025 and 2026, citing a balanced model resilient to interest rate volatility [18][19] - The company is optimistic about growth opportunities in 2025, particularly in correspondent and co-issue markets [28] Other Important Information - The company received the SHARP Gold Award from Freddie Mac, reflecting its commitment to quality and performance [9][10] - Moody's placed the corporate rating on a positive outlook, citing the growing strength and scale of the franchise [12] Q&A Session All Questions and Answers Question: Can you talk about the drivers that could get you to 20% ROTCE? - Management indicated that the services segment generates fee-based income, which can lead to higher ROTCE, and emphasized operational leverage as a key driver [60][64][66] Question: Can you sustain double-digit growth for services fee revenue? - Management expressed confidence in sustaining growth in the services revenue stream, highlighting opportunities with existing and new clients [69][71] Question: Can you discuss the pipeline for bulk MSR and returns? - Management noted that the bulk market is returning at attractive levels and expects continued consolidation in the industry [74][76][78] Question: Do you see room for correspondent market share to increase further? - Management confirmed expectations for continued growth in correspondent market share, focusing on scale and cost leadership [104][105] Question: Can you provide directional color on margins by channel? - Management stated that margins remained consistent across channels, with no significant changes from the fourth quarter to the first quarter [113][114] Question: Should we think about the growth rate of UPB in low double digits? - Management indicated that growth in UPB should be viewed in the context of low double digits, emphasizing a disciplined approach to acquisitions [142][143]

4Q'24 EARNINGS REVIEW February 12, 2025 1 | IMPORTANT INFORMATION This presentation contains summarized information concerning Mr. Cooper Group Inc. ("Mr. Cooper" or the "Company") and the Company's business, operations, financial performance and trends. No representation is made that the information in this presentation is complete. For additional financial, statistical and business related information, as well as information regarding business and segment trends, see the Company's most recent Annual Repor ...

Mr Cooper (COOP) came out with quarterly earnings of $2.73 per share, beating the Zacks Consensus Estimate of $2.58 per share. This compares to earnings of $1.71 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.81%. A quarter ago, it was expected that this reinsurance company would post earnings of $2.54 per share when it actually produced earnings of $2.84, delivering a surprise of 11.81%.Over the last four quarters, the com ...

Financial Performance - Reported net income of $204 million, resulting in a return on common equity (ROCE) of 17.3% and an operating return on tangible common equity (ROTCE) of 15.8%[6] - Total revenues for Q4 2024 were $654 million, up from $424 million in Q3 2024[18] - Net income for Q4 2024 was $204 million, compared to $80 million in Q3 2024, marking a 155% increase[24] - Earnings per share (EPS) for Q4 2024 were $3.20 (basic) and $3.13 (diluted), up from $1.24 (basic) and $1.22 (diluted) in Q3 2024[24] - Total expenses for Q4 2024 were $367 million, an increase from $335 million in Q3 2024, reflecting a 10% rise[24] - The company reported a pretax income of $280 million in Q4 2024, compared to $112 million in Q3 2024, indicating a 150% increase[24] - Operating income for the year ended December 31, 2024, was $681 million, with a return on tangible common equity (ROTCE) of 15.6%[27] - Total revenues for the year ended December 31, 2024, were $2,225 million, up from $1,664 million in the previous year, representing a 33.5% increase[27] Servicing Portfolio - Servicing portfolio grew 57% year-over-year to $1,556 billion, with pretax operating income of $318 million excluding mark-to-market adjustments[5] - Average unpaid principal balance (UPB) for the servicing portfolio was $1,407 billion, with a 60+ day delinquency rate of 1.6%[7] - The annualized conditional prepayment rate (CPR) was 7.5%, compared to 7.1% in the previous quarter[7] Shareholder Actions - The company repurchased 0.4 million shares of common stock for $38 million during the quarter[6] Acquisitions and Recognition - Completed the acquisition of Flagstar's mortgage operations, enhancing the customer base and operational capabilities[4] - The company recognized as the top mortgage servicer by Freddie Mac, receiving the 2024 SHARP Gold Award[6] Other Income and Financial Metrics - The company’s net gain on mortgage loans held for sale in Q4 2024 was $117 million, compared to $136 million in Q3 2024, showing a decrease of 14%[24] - The company’s total other income (expense), net for Q4 2024 was $(7) million, a decline from $23 million in Q3 2024, indicating a negative shift[24] Book Value - Book value per share increased to $75.70 and tangible book value per share increased to $71.61[6] - The average tangible book value (TBV) for Q4 2024 was $4,514 million, compared to $4,451 million in Q3 2024, reflecting a 1.4% increase[24] Originations Segment - Originations segment earned pretax income of $46 million, with funded volume increasing 36% quarter-over-quarter to approximately $9.3 billion[8][11]

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Last month, the Federal Reserve made a notable 50-basis point rate cut, marking its first reduction since March 2020. Investors remain optimistic that the Fed might enact two additional cuts this year, but concerns over a slowing economy have raised doubts about the pace of these reductions. With the U.S. presidential election just weeks away, market volatility is expected to rise. In this climate, value investing could be a sound strategy, allowing investors to buy undervalued stocks and potentially realiz ...

Mr. Cooper Group Inc. (COOP) reported third-quarter 2024 adjusted earnings per share of $2.84, which beat the Zacks Consensus Estimate by 11.8%. The bottom line rose 1.8% year over year.Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.Solid growth in the Servicing and Originations segments were major tailwinds for the company in the third quarter. The servicing portfolio increased year over year, surpassing the $1.2-trillion mark. However, a decline in revenues and an increase ...

1 | 3Q'24 EARNINGS REVIEW October 23rd, 2024 This presentation contains summarized information concerning Mr. Cooper Group Inc. ("Mr. Cooper" or the "Company") and the Company's business, operations, financial performance and trends. No representation is made that the information in this presentation is complete. For additional financial, statistical and business related information, as well as information regarding business and segment trends, see the Company's most recent Annual Report on Form 10-K ("Form ...