- Mr. Cooper Group (NASDAQ:COOP) gains 12% after Q2 results came in better than some analysts expected.
- Q2 loss of $87M, or 98 cents per share, includes net fair value mark-to-market on the MSR portfolio of $231M.
- Q2 origination volumes of $10B sailed past BTIG analyst Giuliano Bologna's estimate of $8.4B and segment pretax income of $118M vs. the $55M he expected.
- Credit Suisse analyst Douglas Harter says servicing, originations, and Xome all were better than expected, fueling adjusted earnings beat; Q2 adjusted EPS of 98 cents vs. 33 cents consensus.
- The "only offset" was COOP's mark-to-market on the MSR portfolio, which reduced tangible book value to $15.95 per share form $16.91 in Q1, Bologna says.
- Still, he writes "TBV is not the primary metric investors should focus on because it does not have meaning impact on COOP’s ability to generate cash flow in the future."