LoanDepot Q3 revenue rises on higher pull-through volume

Reuters11-07
LoanDepot Q3 revenue rises on higher pull-through volume

Overview

  • LoanDepot Q3 adjusted revenue beats analyst expectations, rising 11% quarter-over-quarter

  • Company narrows Q3 net loss to $9 mln from $25 mln in prior quarter

  • Adjusted EBITDA for Q3 beats consensus, increasing 90% quarter-over-quarter

Outlook

  • LoanDepot expects Q4 origination volume between $6.5 bln and $8.5 bln

  • Company sees Q4 pull-through weighted rate lock volume between $6.0 bln and $8.0 bln

  • LoanDepot anticipates Q4 pull-through weighted gain on sale margin of 300-325 basis points

Result Drivers

  • HIGHER PULL-THROUGH VOLUME - Increased pull-through weighted lock volume contributed to revenue growth

  • RESHAPED LEADERSHIP - CEO Anthony Hsieh attributes improved operational focus to reshaped leadership team

  • EXPENSE MANAGEMENT - CFO David Hayes cites disciplined expense management for narrowing loss

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$323.32 mln

Q3 Adjusted Revenue

Beat

$325.16 mln

$312.94 mln (4 Analysts)

Q3 EPS

-$0.02

Q3 Adjusted Net Income

Beat

-$2.85 mln

-$7.17 mln (5 Analysts)

Q3 Net Income

-$8.73 mln

Q3 Adjusted EBITDA

Beat

$48.79 mln

$28.40 mln (1 Analyst)

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

  • Wall Street's median 12-month price target for loanDepot Inc is $3.00, about 7% above its November 5 closing price of $2.79

  • The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 62 three months ago

Press Release: ID:nBwbKJRfza

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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