UWM (NYSE:UWMC) Posts Quarterly Earnings Results, Beats Expectations By $0.06 EPS

UWM (NYSE:UWMC) announced its quarterly earnings data on Wednesday. The company reported $0.10 EPS for the quarter, topping analysts’ consensus estimates of $0.04 by $0.06, Zacks reports. UWM had a return on equity of 4.24% and a net margin of 0.55%. The firm had revenue of $811.09 million for the quarter, compared to the consensus estimate of $690.29 million.

Here are the key takeaways from UWM’s conference call:

• UWM reported $33.4 billion in loan volume and described the quarter as profitable, saying its wholesale business remains strong despite a difficult mortgage-market backdrop.
• Management expects expenses to remain lower, citing AI and technology investments and a gradual shift to in-house servicing; it called $2.1 billion a reasonable 2027 expense target, while noting costs could rise if loan volume grows substantially.
• The company said MSR sales are helping generate liquidity and reduce risk and leverage. Management targets leverage below 1.5 by year-end, from about 1.7–1.8 currently, while emphasizing that MSR sales will remain opportunistic.
• Management expects fourth-quarter volume to be lower than in stronger periods, citing seasonal patterns and market headwinds, and said it does not expect $40 billion–$60 billion of quarterly volume. It also offered no firm timeline for repaying the costly Oaktree preferred financing, saying repayment depends on earnings and market conditions.
• UWM said it has moved 700,000 loans onto its in-house servicing platform and expects further efficiency gains and improved service levels as it optimizes the system; these benefits remain prospective.

UWM Stock Down 3.0%

NYSE UWMC traded down $0.04 during mid-day trading on Monday, reaching $1.48. 6,475,013 shares of the company’s stock traded hands, compared to its average volume of 18,047,982. UWM has a 1-year low of $0.93 and a 1-year high of $6.15. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 6.05. The company has a market cap of $2.37 billion, a price-to-earnings ratio of 73.75, a P/E/G ratio of 5.43 and a beta of 1.82. The company has a fifty day simple moving average of $1.31 and a 200-day simple moving average of $2.71.

Analyst Ratings Changes

UWMC has been the topic of a number of recent analyst reports. Barclays decreased their target price on shares of UWM from $4.00 to $2.00 and set an “overweight” rating on the stock in a research report on Friday, August 7th. The Goldman Sachs Group reissued a “neutral” rating and set a $1.50 price objective on shares of UWM in a research report on Wednesday, November 4th. Compass Point cut UWM from a “buy” rating to a “neutral” rating and set a $1.50 price target on the stock. in a research note on Tuesday, October 27th. Weiss Ratings downgraded shares of UWM from a “sell (d+)” rating to a “sell (d)” rating in a research report on Tuesday, August 11th. Finally, Keefe, Bruyette & Woods cut shares of UWM from an “outperform” rating to a “market perform” rating and set a $1.50 target price on the stock. in a report on Wednesday, October 7th. Four equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $2.45.

About UWM

UWM Holdings Corporation operates United Wholesale Mortgage, a mortgage lender that works through independent mortgage brokers rather than originating loans directly for consumers. The company provides residential mortgage products for home purchases and refinancings, along with technology and operational support to help brokers guide borrowers through the lending process.

Its offerings include conventional, government-backed and jumbo home loans. UWM serves brokers and borrowers across the United States, using its wholesale model to connect mortgage professionals with loan processing, underwriting and closing services.

United Wholesale Mortgage traces its roots to 1986 and is headquartered in Pontiac, Michigan.