UWM Holdings Corporation Class A Up 16.18% To $3.59 After Earnings Beat

UWM Holdings Corp (UWMC) beat out earnings estimates for Q3 2022 this morning.

The consensus among analysts for UWM Holdings Corporation Class A was for an earnings per share (EPS) loss of $0.03 per share. The firm was able to surpass those projections, reporting an EPS of $0.16, a positive surprise of $0.19 (633%). Profits fell 0% year-over-year after reporting an EPS of $0.16 in its year-ago quarter. The neutral growth rate signals that the Financial Services company is performing neutrally amid recent economic conditions.

Consensus analyst estimates were at $291.1 million. The Financial Services company managed to surpass those expectations for its third quarter with revenue of $684.2 million, a positive revenue surprise of $393.1 million (135%). The firm managed negative 1% growth year-over-year due to UWM Holdings Corporation Class A reporting quarterly revenue of $690.3 million in its year-ago quarter. UWM Holdings Corporation Class A achieved a higher earnings growth rate than revenue, signaling that the business has improved its profit margin.

The stock is up 16.18% to $3.59 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

Wall Street Analysts had an average rating of Hold on the stock prior to the report.

Trading in the five days leading up to the report earned UWM Holdings Corporation Class A a Bearish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 18. Meanwhile, the average Wall Street analyst rated the stock a Hold.

UWM Holdings Corp engages in the origination, sale and servicing of residential mortgage loans. The company provides independent mortgage advisors across the states and the district of Columbia.