UWMC - UWM Holding stock gains after Q1 results trounce; $300M buyback announced
UWM Holdings (NYSE:UWMC) stock is climbing 6.6% in Tuesday premarket trading after the wholesale mortgage originator's Q1 earnings topped the consensus estimate and the company's board authorized a $300M stock buyback program. Furthermore, the company's gain on margin sale, a measure of lending profitability, is holding up better than analysts expected. The company expects Q2 production of $26B-$33B (Visible Alpha consensus $45.1B) and gain margin of 75-90 basis points, vs. Visible Alpha consensus of 81 bps. Q1 originations of $38.8B (vs. Visible Alpha consensus of $40.8B) declined from $55.2B in Q4 2021 and from $49.1B in Q1 2021. Q1 total gain margin of 99 bps increased from 80 bps in the previous quarter and fell from 2.19 bps in the year-ago quarter. The latest quarter's gain margin came in well above the Visible Alpha consensus of 79 bps. Q1 adjusted net income of $349.4M rose from $177.1M in Q4 and dropped from $666.9M
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UWM Holding stock gains after Q1 results trounce; $300M buyback announced