NYSE$ONIT

Onity Group Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported GAAP net income and completed agreement with Oaktree for incremental investment.

Ocwen Financial Corporation reported a solid quarter with improved earnings and strong growth in book value and earnings per share, driven by MSR appreciation, expense reduction, and higher margin originations products. An agreement with Oaktree was completed for an incremental $250 million investment to acquire additional MSRs.

  • GAAP net income was reported as $37 million for the third quarter.
  • An agreement was finalized with Oaktree for an incremental capital investment into MAV.
  • The investment would provide funding for up to $60 billion of additional MSR acquisitions.
  • The company is focusing on subservicing, higher margin originations, and cost discipline.

Headline financials

Total Revenue

$250M

Previous: $283M-11.8%
EPS (adj)

$4.17

Previous: $2.29+82.1%
Capital Expenditures

-$4.76M

Previous: $1.23M-486.7%
Free Cash Flow

$32.2M

Previous: $21.6M+49.3%
Net Income

$36.9M

Previous: $21.6M+71.4%
Operating Income

$50.6M

Previous: $127M-60.3%
Gross Profit

$118M

Previous: $192M-38.5%
Cash & Equivalents

$227M

Previous: $236M-4.0%
Total Assets

$12.4B

Previous: $12B+2.7%
Stock-Based Comp

$1.49M

Previous: $1.44M+3.3%

Revenue & EPS history

Onity · Revenue · Quarterly

$250M

Q3 2022-11.8%vs Q3 2021
Beat estimate in 6 of 13 quarters(46%)
ActualEstimate

Forward guidance

Ocwen believes they are well-positioned to navigate the market environment and address a potential recession.

Tailwinds

  • Emphasizing subservicing to drive servicing portfolio growth.
  • Expanding higher margin originations products and clients.
  • Maintaining continuous cost discipline.
  • Allocating capital to enable efficient growth.
  • Maximizing returns for shareholders.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-1.4%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+1.8%

Avg return

30 days after

53%

34 / 64 earnings

Positive

+67.5%

Q1 2020

Best reaction

-65.7%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.2%-17.5%-21.8%
Q4 2025+6.1%+11.3%-8.3%
Q3 2025+1.8%+0.0%+13.7%
Q1 2025+5.6%+5.4%+4.3%
Q4 2024-7.9%-14.9%-22.9%
Q3 2024+3.5%+3.6%+9.7%
Q2 2024-8.8%-15.7%-0.9%
Q1 2024+6.4%+12.3%+1.4%
Q4 2023-8.1%-7.8%-4.6%
Q3 2023-2.2%+0.3%+12.3%
Q2 2023-2.4%-5.8%-12.6%
Q1 2023+1.8%-0.7%+3.6%
Q4 2022-14.9%-13.1%-28.4%
Q3 2022+24.3%+20.8%+16.5%
Q2 2022-20.0%-21.3%-25.8%
Q1 2022+7.6%+3.4%+32.7%
Q4 2021-18.6%-20.2%-29.1%
Q3 2021+9.1%+1.9%+10.1%
Q2 2021-0.2%+5.3%+4.1%
Q1 2021+9.8%+26.8%+24.1%
Q4 2020+3.9%-1.8%-3.4%
Q3 2020+2.5%-0.3%+0.4%
Q2 2020+11.6%+24.0%-9.8%
Q1 2020+67.5%+40.0%+97.5%
Q4 2019+5.4%+0.8%-55.8%
Q3 2019+0.0%-1.1%-17.1%
Q2 2019-12.1%-7.3%+6.7%
Q1 2019+6.9%+8.1%-7.5%
Q4 2018+12.0%+13.6%-4.7%
Q3 2018-19.2%-25.7%-52.0%
Q2 2018-9.4%-8.3%-0.7%
Q1 2018+10.2%+14.8%+8.5%
Q4 2017+5.6%+12.8%+22.3%
Q3 2017+0.9%-6.4%-5.0%
Q2 2017+0.7%-0.7%+2.8%
Q1 2017-15.4%-17.1%-10.0%
Q4 2016-20.2%-20.4%-13.2%
Q3 2016+10.2%+14.2%+37.7%
Q2 2016+4.0%+17.8%+94.8%
Q1 2016-20.7%
Q4 2015-65.7%
Q3 2015+0.4%
Q2 2015-27.0%
Q1 2015+18.2%
Q4 2014-9.2%
Q3 2014+13.2%
Q2 2014-20.1%
Q1 2014-8.8%
Q4 2013+1.8%
Q3 2013-9.6%
Q2 2013+7.1%
Q1 2013+2.0%
Q4 2011+3.3%
Q4 2012+6.0%
Q3 2012-7.4%
Q2 2012+2.7%
Q1 2012+1.4%
Q3 2010-10.7%
Q3 2011-10.7%
Q2 2011+0.2%
Q1 2011-1.9%
Q2 2010-1.9%
Q4 2010-1.9%
Q1 2010-1.9%

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