Mr. Cooper Group(US:COOP) ZACKSยท2024-08-08 18:20Core Insights - Mr. Cooper Group Inc. (COOP) reported strong second-quarter 2024 results, with adjusted earnings per share (EPS) of $2.52, surpassing estimates by 8.2% and showing a year-over-year increase of 51.8% [4] - The company's stock has increased by 30.8% year-to-date, outperforming the industry and S&P 500 Index [1] Financial Performance - Total revenues for Q2 2024 reached $583 million, a 3.4% increase year-over-year, exceeding consensus estimates by 4.7% [4] - Net income for the quarter was $204 million, up from $142 million a year ago [5] - Total expenses rose by 7.9% year-over-year to $300 million, driven by higher salaries and general administrative costs [5] Segment Analysis - The Servicing segment reported a pretax operating income of $354 million, a 45.7% increase year-over-year, with total revenues of $456 million, surpassing last year's $368 million [6] - The Originations segment's pretax operating income remained flat at $38 million, with total revenues increasing to $107 million from $97 million a year ago [7] Acquisition and Growth Strategy - The company announced the acquisition of Flagstar's mortgage operations, valued at $1.4 billion, which includes mortgage servicing rights (MSRs) and subservicing contracts totaling nearly $356 billion in unpaid principal balance (UPB) [3] - The servicing portfolio has reached $1.2 trillion, reflecting significant growth [2][6] Financial Position - As of June 30, 2024, total assets were $15.8 billion, up from $14.2 billion at the end of 2023 [8] - Cash and cash equivalents increased to $642 million from $571 million at the end of 2023 [8] - Total liabilities rose to $11.2 billion from $9.9 billion at the end of 2023, while total shareholders' equity increased to $4.6 billion from $4.3 billion [8] Capital Management - The company repurchased 0.3 million shares for $24 million during the quarter, with approximately $270 million remaining in its repurchase program [10]