DALLAS - Mr. Cooper Group Inc. (NASDAQ: COOP) outperformed market expectations in the first quarter, posting an adjusted EPS of $2.73, significantly higher than the analyst projection of $2.05. The company's revenue also saw a substantial increase, reaching $577 million, which surpassed the consensus estimate of $496.15 million.
The financial services provider, known for its focus on mortgage servicing and loan origination, reported a net income of $181 million for the quarter. This figure includes a mark-to-market gain of $42 million, contributing to a robust return on common equity (ROCE) of 16.7% and an operating return on tangible common equity (ROTCE) of 14.5%. The company's book value per share and tangible book value per share rose to $68.06 and $65.48, respectively, reflecting a strong balance sheet position.
Mr. Cooper's servicing portfolio experienced significant growth, with a 33% year-over-year (YoY) increase, reaching $1,136 billion. Chairman and CEO Jay Bray attributed this performance to the company's strategic investments in technology, particularly in artificial intelligence and cloud services, which have positioned Mr. Cooper to provide exceptional service to customers and sustain investor returns.
The company's operational revenue for the quarter stood at $577 million, marking a 13.8% increase from the $507 million reported in the previous quarter. The servicing segment was a notable contributor to the company's success, recording a pretax income of $313 million, which included the aforementioned mark-to-market gain.
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