Overview
Onity Q2 revenue of $246.6 mln missed analyst expectations, per LSEG data
Adjusted pre-tax profit of $16 mln missed analyst expectations, per LSEG data
Originations volume up 35% YoY, exceeding industry growth rate
Outlook
Company confirms 2025 adjusted ROE guidance of 16% - 18%
Onity may release $180 mln deferred tax valuation allowance by year-end 2025
Result Drivers
ORIGINATIONS GROWTH - Originations volume increased by 35% YoY, surpassing industry growth rate of 23%
SERVICING PORTFOLIO - Average servicing UPB rose by $2 bln YoY, contributing to overall growth
RECAPTURE PLATFORM - Funded recapture volume up 2.4x YoY, with refinance recapture rate 1.5x industry average
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $246.60 mln | $252.90 mln (3 Analysts) |
Q2 EPS | $2.4 | ||
Q2 Net Income | $20 mln | ||
Q2 Adjusted Pretax Profit | Miss | $16 mln | $19.40 mln (3 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Onity Group Inc is $50.00, about 24.9% above its August 4 closing price of $37.53
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago
Press Release: ID:nGNX1bQBNJ
(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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