Mr Cooper up 20% on Q4 results: we’ll benefit from higher interest rates

Mr Cooper Group Inc (NASDAQ: COOP) went up roughly 20% in the stock market to a 52-week high on Friday after reporting better-than-expected results for its fiscal fourth quarter.

What the Q4 earnings report tells us

Mr Cooper said it earned $2.01 on a per-share basis on $625 million in revenue – both ahead of experts’ forecast. In the comparable quarter of last year, it had posted $2.0 of EPS and $190 million in revenue.

The board authorised another $200 million share buyback, bringing the total to $252 million. The mortgage company had its tangible book value jump to $43.82 per share. Servicing UPB was up 17% year-over-year, but originations volume was down. In the earnings press release, CFO Chris Marshall said:

CEO Bray’s remarks on CNBC’s ‘The Exchange’

According to CEO Jay Bray, a balanced business model positions the company well to benefit from the upcoming rate hikes. On CNBC’s “The Exchange”, he said:

Also on Friday, Mr Cooper partnered with Sagent to create the industry’s first cloud-native servicing platform. The stock now trades at a PE multiple of 3.0.