U.S. Markets closed

What's in the Offing for Mr. Cooper (COOP) in Q1 Earnings?

Zacks Equity Research
·3 min read

Mr. Cooper Group Inc. COOP is scheduled to announce first-quarter 2020 results on Apr 30, before market open. Its revenues and earnings are likely to have improved in the quarter on a year-over-year basis.

In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. The results benefited from an increase in revenues and lower expenses.

Activities of the company in the first quarter failed to win analysts’ confidence. As a result, the Zacks Consensus Estimate for its earnings of 92 cents for the to-be-reported quarter has been unchanged over the past 30 days. Nonetheless, the figure indicates growth of 84% from the year-ago reported number.

The consensus estimate for sales of $418.4 million suggests 67.4% growth on a year-over-year basis.

MR. COOPER GROUP INC Price and EPS Surprise

 

MR. COOPER GROUP INC Price and EPS Surprise
MR. COOPER GROUP INC Price and EPS Surprise

MR. COOPER GROUP INC price-eps-surprise | MR. COOPER GROUP INC Quote

Factors at Play

Muted Originations: Due to lower interest rates during the quarter, mortgage refinance volumes are expected to have increased during the quarter. Nonetheless, despite lower mortgage rates, mortgage originations for the quarter are anticipated to have been down due to seasonality.

Decline in Revenues: Fed lowered interest rates to near-zero levels during the quarter in order to support the U.S. economy from coronavirus-induced slowdown. Thus, the company’s mark-to-market revenues are expected to have declined during the quarter. Also, with lower origination, related fees are anticipated to have reduced.

Higher Expenses: Mr. Cooper’s efforts to expand the servicing portfolio and an increase in the headcount, largely driven by the Pacific Union and Seterus acquisitions, is expected to have kept expenses elevated in the first quarter. Also, the company’s Project Titan, aimed at increasing operational efficiencies, is expected to have flared corporate, and other general and administrative expenses.

Earnings Whispers

Our quantitative model does not predict an earnings beat for Mr. Cooperthis time around. The combination of two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher — increases the odds of an earnings beat. But that’s not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Mr. Cooperhas an Earnings ESP of 0.00%.

Zacks Rank: The company currently carries a Zacks Rank #2 (Buy).

Stocks That Warrant a Look

Here are a few finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.

Moody's Corporation MCO is scheduled to release results on Apr 30. The company currently has an Earnings ESP of +0.18% and a Zacks Rank of 3.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ConnectOne Bancorp, Inc. CNOB is likely to release earnings figures around Apr 30. The company, which carries a Zacks Rank of 3 at present, has an Earnings ESP of +6.49%.

First BanCorp. FBP is slated to report quarterly earnings on Apr 30. The company, which carries a Zacks Rank of 3 at present, has an Earnings ESP of +8.51%.

Zacks Top 10 Stocks for 2020

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?

Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

Access Zacks Top 10 Stocks for 2020 today >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Moody's Corporation (MCO) : Free Stock Analysis Report
 
First BanCorp. (FBP) : Free Stock Analysis Report
 
ConnectOne Bancorp, Inc. (CNOB) : Free Stock Analysis Report
 
MR. COOPER GROUP INC (COOP) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.