NYSE$UWMC

UWM Holdings Corp · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

UWM Holdings Corporation reported a net income of $860 million and loan volume of $49.1 billion for Q1 2021.

UWM Holdings Corporation announced strong first-quarter results, with a net income of $860 million, a 42x increase over Q1 2020, and a loan volume of $49.1 billion, a 16% increase from Q1 2020. The company's Board of Directors declared a quarterly dividend of $0.10 per share and authorized a share repurchase program of up to $300 million.

  • Net income reached $860 million, a 42x increase compared to Q1 2020.
  • Loan volume totaled $49.1 billion, up 16% from Q1 2020.
  • Total gain margin was 219 bps, compared to 95 bps in Q1 2020.
  • The Board of Directors authorized a share repurchase program of up to $300 million.

Headline financials

Total Revenue

$1.19B

No prior period
EPS (adj)

$0.33

No prior period
Total Origination Volume

$49.1B

No prior period
Capital Expenditures

-$9.82M

No prior period
Free Cash Flow

$38.2M

No prior period
Net Income

$48M

No prior period
Operating Income

$873M

No prior period
Gross Profit

$1.19B

No prior period
Cash & Equivalents

$1.59B

No prior period
Total Assets

$10.4B

No prior period

Revenue & EPS history

UWM · Revenue · Quarterly

$1.19B

Q1 2021
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

UWM · $1.19B total across 4 segments · Q1 2021

  • Loan Production Income
    $1.07B
  • Loan Servicing Income
    $124M
  • Interest Income
    $45.9M
  • MSR Fair Value Change
    -$59.3M

Forward guidance

UWM anticipates second quarter production to be in the $51-$55 billion range, with expected gain margin between 75 and 110 bps.

Tailwinds

  • UWMC expects to do more business in 2Q21 than 1Q21.
  • UWMC believes that it will be one of the only mortgage companies in America that grows in a rising rate environment.
  • Second quarter production is anticipated to be in the $51-$55 billion range.
  • Expected gain margin between 75 and 110 bps.
  • Purchase focus and broker network will drive growth.

Headwinds

  • Guidance assumes successful navigation of macroeconomic conditions.
  • Guidance is subject to U.S. residential real estate market conditions.
  • Guidance is subject to changes in U.S. monetary policies that affect interest rates.
  • Guidance is subject to UWM's ability to sell loans in the secondary market.
  • Guidance is subject to changes in GSE, FHA, USDA and VA guidelines.

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-1.7%

Avg return

Earnings day

-1.2%

Avg return

5 days after

+0.5%

Avg return

30 days after

29%

6 / 21 earnings

Positive

+28.2%

Q3 2022

Best reaction

-16.8%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.2%-11.2%-28.4%
Q4 2025-9.0%-5.0%-25.0%
Q3 2025-10.1%-3.4%+1.2%
Q1 2025-14.7%-11.3%-13.8%
Q4 2024-5.8%-0.2%-14.6%
Q3 2024-6.0%-9.2%-2.4%
Q2 2024-6.5%-3.8%+2.3%
Q1 2024-0.7%+2.8%+2.8%
Q4 2023-4.9%-4.6%+8.2%
Q3 2023+4.3%+6.9%+15.6%
Q2 2023-1.6%-4.0%-16.3%
Q1 2023-16.8%-11.3%-7.4%
Q4 2022+12.7%+11.7%+15.3%
Q3 2022+28.2%+22.3%+44.7%
Q2 2022-0.5%+1.0%-9.2%
Q1 2022+0.3%+8.9%+18.1%
Q4 2021+7.4%-4.1%+4.4%
Q3 2021-1.5%-2.2%-3.8%
Q2 2021-7.0%-7.6%-8.5%
Q1 2021-2.4%+7.9%+43.1%
Q4 2020+0.6%-7.9%-16.0%
Q4 2019

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