Guild (GHLD) Moves 5.2% Higher: Will This Strength Last?

Company Overview - Guild Holdings Company (GHLD) shares increased by 5.2% to close at $14.43, with notable trading volume compared to typical sessions, and a total gain of 10.3% over the past four weeks [1] - The company has a nationwide retail origination presence across 49 states and the District of Columbia, with approximately 440 branch locations, which supports its growth [2] Business Model and Strategy - Guild operates a dual origination-servicing model that provides revenue stability across interest rate cycles and utilizes a proprietary technology platform to enhance operational efficiency and client experience [2] - The company leverages strong referral relationships from knowledgeable loan officers, with purchase originations making up 88.1% of total volume in 2024 [3] - Guild's scalable in-house servicing supports recurring revenues and client retention, while its acquisition strategy has expanded its market footprint and competitive positioning [3] Financial Performance and Expectations - The company is expected to report quarterly earnings of $0.20 per share, reflecting a year-over-year increase of 53.9%, while revenues are projected to be $218.42 million, down 5.8% from the previous year [4] - The consensus EPS estimate has been revised 5.7% lower over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [5] Industry Context - Guild belongs to the Zacks Financial - Miscellaneous Services industry, where another company, Core Scientific, Inc. (CORZ), has seen a decline of 27.5% over the past month [5]