Onity Group posts Q2 net loss due to restructuring costs
Onity Group posts Q2 net loss due to restructuring costs
Overview
U.S. mortgage servicer's Q2 revenue rose 15% yr/yr, driven by record origination volume
Company reported Q2 net loss due to restructuring costs and unfavorable asset fair value changes
Completed sale of reverse assets, generating $77 mln in net proceeds
Outlook
Onity maintains 2026 adjusted ROE guidance at 10%-15%, expects results at lower end of range
Company reaffirms guidance on servicing UPB growth, MSR hedge effectiveness, and operating efficiency
Result Drivers
ORIGINATION VOLUME - Record originations and significant subservicing additions drove double-digit revenue and servicing UPB growth
PORTFOLIO RESTRUCTURING COSTS - Net loss was impacted by reverse asset sale and transfer of legacy subservicing
Company press release: ID:nGNX3dpdFN
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Loss Per Share |
| $1.53 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Onity Group Inc is $50.00, about 31.4% above its August 5 closing price of $38.05
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 5 three months ago
Reuters Recommended Reads
Aug 5 - UWM Holdings Q2 swings to net loss, EPS misses estimates
Aug 4 - LoanDepot Q2 adjusted net loss narrows from prior quarter but misses profit expectations
Aug 4 - Finance of America Q2 adjusted EPS misses estimates as revenue falls
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)
Recent news on Onity
See all newsBrief: Onity Group Files Declaratory Judgment Action In Us District Court For Northern District Of Ny For Clarity On Ny Mortgage Servicing Regulation
Onity Group Inc reports results for the quarter ended June 30 - Earnings Summary
Onity Group posts Q2 net loss due to restructuring costs
Onity Group Inc expected to post earnings of 95 cents a share - Earnings Preview
Brief: Onity Group Provides Update On Reverse Transaction And Announces Share Repurchase Program