Mr. Cooper Group Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

A week ago, Mr. Cooper Group Inc. (NASDAQ:COOP) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Mr. Cooper Group delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting US$564m-12% above indicated-andUS$2.73-30% above forecasts- respectively The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Mr. Cooper Group

Following the latest results, Mr. Cooper Group's six analysts are now forecasting revenues of US$2.26b in 2024. This would be a meaningful 11% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$10.14, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$2.13b and earnings per share (EPS) of US$8.81 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a substantial gain in earnings per share in particular.

It will come as no surprise to learn that the analysts have increased their price target for Mr. Cooper Group 7.2% to US$93.25on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Mr. Cooper Group, with the most bullish analyst valuing it at US$100.00 and the most bearish at US$87.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Mr. Cooper Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 16% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 1.2% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 4.2% per year. So it looks like Mr. Cooper Group is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Mr. Cooper Group following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Mr. Cooper Group going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Mr. Cooper Group that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.