Overview
Guild Holdings Q3 revenue misses analyst expectations despite 7% yr/yr growth in originations
Adjusted EPS for Q3 beats consensus, reflecting strong operational performance
Adjusted net income for Q3 exceeds analyst estimates, driven by operational strength
Outlook
Company did not provide specific financial guidance for future quarters
Result Drivers
PURCHASE ORIGINATIONS - 86% of loan volume were purchase originations, compared to industry estimate of 67%
GAIN ON SALE MARGIN - Gain on sale margin on originations increased 18 bps quarter-over-quarter and 14 bps year-over-year to 347 bps
OPERATIONAL EFFICIENCIES - Higher adjusted net income and adjusted EBITDA indicate improved operational efficiencies
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $307.40 mln | $324.40 mln (3 Analysts) |
Q3 Adjusted EPS | Beat | $0.75 | $0.49 (6 Analysts) |
Q3 EPS | $0.53 | ||
Q3 Adjusted Net Income | Beat | $47 mln | $31.30 mln (3 Analysts) |
Q3 Net Income | $33.3 mln | ||
Q3 Adjusted EBITDA | $72 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer lending peer group is "buy."
Wall Street's median 12-month price target for Guild Holdings Co is $18.00, about 10.4% below its November 4 closing price of $19.88
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago
Press Release: ID:nBw2Ws84ca
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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.)