Mr. Cooper Group Inc. (NASDAQ:COOP) investors will be delighted, with the company turning in some strong numbers with its latest results. Statutory revenue and earnings both blasted past expectations, with revenue of US$1.3b beating expectations by 39% and earnings per share (EPS) reaching US$5.92, some 150% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Mr. Cooper Group
Taking into account the latest results, the four analysts covering Mr. Cooper Group provided consensus estimates of US$3.15b revenue in 2021, which would reflect a definite 15% decline on its sales over the past 12 months. Statutory earnings per share are forecast to plummet 46% to US$6.13 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$3.18b and earnings per share (EPS) of US$6.13 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$40.57, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Mr. Cooper Group, with the most bullish analyst valuing it at US$45.00 and the most bearish at US$32.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 20% by the end of 2021. This indicates a significant reduction from annual growth of 66% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 5.1% per year. The forecasts do look bearish for Mr. Cooper Group, since they're expecting it to shrink faster than the industry.