NYSE$UWMC
UWM Holdings Corp · Q4 2020 earnings
Q4 2020 earnings · · Investor relations
Briefing
UWM reported record results driven by significant growth in loan volume and gain margin.
UWM Holdings Corporation reported a net income of $1.37 billion for Q4 2020, a significant increase compared to $148.9 million in Q4 2019. The company's loan volume reached $54.7 billion, up 71% from the previous year. The board declared its first regular quarterly dividend of $0.10 per share.
- UWM reported a record $54.7 billion in loan volume, a 71% increase year-over-year.
- The total gain margin was 305 bps in Q4 2020, compared to 110 bps in Q4 2019.
- Net income for the fourth quarter was $1.37 billion, significantly higher than the $148.9 million reported in the same period last year.
- UWM's equity increased to $2.37 billion as of December 31, 2020, compared to $661.3 million the previous year.
Headline financials
Revenue & EPS history
UWM · Revenue · Quarterly
$901M
Revenue by segment
UWM · $677M total across 4 segments · Q3 2023
- Loan Production Income$289M+67.6%42.7%
- Loan Servicing Income$200M+1.9%29.6%
- Interest Income$94.8M+21.3%14.0%
- MSR Fair Value Change$92.9M-60.8%13.7%
Forward guidance
UWM anticipates continued growth in the first quarter of 2021, with closed loan volume expected to be between $52 billion and $57 billion and a total gain margin of 200-235 bps.
Tailwinds
- Closed loan volume between $52 billion and $57 billion, representing an increase of 22.6% and 34.4% compared to Q1 2020.
- Total gain margin of 200-235 bps, an increase of 110.5%-142.1% compared to Q1 2020.
- Continued investment in technology and services.
- Potential to take advantage of higher profit opportunities.
- Focus on returning excess cash to stockholders.
Headwinds
- Dependence on macroeconomic and U.S. residential real estate market conditions.
- Reliance on warehouse facilities and the risk of margin calls.
- Ability to sell loans in the secondary market.
- Dependence on government sponsored entities.
- Compliance with complex state and federal laws and regulations.
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 Q4 2020
-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
| Quarter | Report date | Reaction (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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