COOP - Mr. Cooper Q3 earnings beat as servicing portfolio strengthened by higher rates

Mr. Cooper ( NASDAQ: COOP ) turned in stronger-than-expected Q3 earnings Wednesday as the growth in its servicing portfolio was fueled by higher interest rates. COOP stock edged up as much as 1.1% in premarket trading.

"We finished the quarter with extremely robust capital and liquidity, which will support continued prudent growth in our platform and customer base,” said Chairman and CEO Jay Bray.

Q3 EPS of $1.55 exceeded the average analyst estimate of $1.31 but slid from $2.03 in the second quarter ended June 30.

Revenue of $510M also breezed past the consensus of $420.2M but decreased from $599M in the prior quarter. Expenses were $316M vs. $328M in Q2.

Looking at its servicing segment, operational revenue stood at $377M in Q3, down from $394M in Q2. The servicing portfolio, though, grew to $854B in UPB from $804B in Q2.

For its originations unit, funded volume was $5.7B compared with $7.8B in Q2.

Tangible book value of $56.35 a share rose from $54.51 in the previous quarter.

Conference call at 10:00 a.m. ET.

Earlier, Mr. Cooper GAAP EPS of $1.55 beats by $0.25, revenue of $510M beats by $89.8M .

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