Mr. Cooper (NASDAQ:COOP) shares gain as much as 6% in premarket trading after the company agreed to receive a stake in fintech Sagent in exchange for certain intellectual property rights. COOP also posted a robust fourth-quarter that topped consensus estimates.
Terms of the transaction were not disclosed.
Following its purchase of specific IP related to Mr. Cooper’s (COOP) cloud-based mortgage servicing platform, Warburg Pincus-backed Sagent will integrate Mr. Cooper’s platform into a cloud-native core, and license the resulting servicing platform to Mr. Cooper and other servicers, the company said.
With respect to its fourth-quarter results, Mr. Cooper’s (COOP) balance sheet was helped by record levels of capital and liquidity, said Vice Chairman, President and CFO Chris Marshall. Additionally, the company’s board of directors authorized an additional $200 million stock repurchase in the Q4, bringing total authorization to $252 million.
Q4 revenues of $625M topped the $550.78M consensus and fell from $860M in the previous quarter.
Q4 interest income of $68M slightly rose from $66M in Q3.
Mortgage loans held for sale at fair value were $4.38B in Q4, down substantially from $7.93B in the third quarter. Q4 liabilities of $10.83B fell from $18.40B in Q3.
Q4 tangible book value of $3.12B compared with $3.12B in the prior quarter.
Conference call starts at 10:00 a.m. ET.
Earlier, Mr. Cooper EPS of $2.01 beat the consensus by $0.74.
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