Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Mr. Cooper Group (NASDAQ: COOP) and the best and worst performers in the thrifts & mortgage finance industry.

Thrifts & Mortgage Finance institutions operate by accepting deposits and extending loans primarily for residential mortgages, earning revenue through interest rate spreads (difference between lending rates and borrowing costs) and origination fees. The industry benefits from demographic tailwinds as millennials enter prime homebuying age, technological advancements streamlining the loan approval process, and potential interest rate stabilization improving affordability. However, significant headwinds include net interest margin compression during rate volatility, increased competition from fintech disruptors offering digital-first experiences, mounting regulatory compliance costs, and potential housing market corrections that could impact loan portfolios and default rates.

The 22 thrifts & mortgage finance stocks we track reported a slower Q1. As a group, revenues missed analysts’ consensus estimates by 17.7%.

In light of this news, share prices of the companies have held steady as they are up 2.7% on average since the latest earnings results.

Mr. Cooper Group (NASDAQ: COOP)

Born from the 2018 merger of Nationstar Mortgage and WMIH Corp, Mr. Cooper Group (NASDAQ: COOP) is a non-bank servicer of residential mortgage loans that collects payments, manages escrow funds, and performs loss mitigation activities for 4.6 million customers.

Mr. Cooper Group reported revenues of $560 million, flat year on year. This print fell short of analysts’ expectations by 9.1%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ tangible book value per share estimates and EPS in line with analysts’ estimates.

Chairman and CEO Jay Bray commented, “This was another strong quarter, highlighting the power of our platform to deliver consistent, recurring, and predictable results, as well as higher returns. I'm proud of our team for their hard work, which has positioned Mr. Cooper to join forces with Rocket to create the industry’s leading integrated homeownership platform. We have formed an integration team and are already working closely with Rocket on post-close planning.”

Interestingly, the stock is up 10.6% since reporting and currently trades at $145.99.

Is now the time to buy Mr. Cooper Group? Access our full analysis of the earnings results here, it’s free.

Best Q1: Northwest Bancshares (NASDAQ: NWBI)

Founded in 1896 and operating across Pennsylvania, New York, Ohio, and Indiana, Northwest Bancshares (NASDAQ: NWBI) is a bank holding company that operates Northwest Bank, providing personal and business banking, investment management, and trust services.

Northwest Bancshares reported revenues of $156.2 million, up 19% year on year, outperforming analysts’ expectations by 9.9%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and a solid beat of analysts’ net interest income estimates.

The market seems happy with the results as the stock is up 13.9% since reporting. It currently trades at $13.45.

Is now the time to buy Northwest Bancshares? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Ladder Capital (NYSE: LADR)

Founded during the 2008 financial crisis when traditional lenders retreated from commercial real estate, Ladder Capital (NYSE: LADR) is a real estate investment trust that originates commercial real estate loans, owns commercial properties, and invests in real estate securities.

Ladder Capital reported revenues of $51.28 million, down 18.9% year on year, falling short of analysts’ expectations by 7.1%. It was a disappointing quarter as it posted a significant miss of analysts’ tangible book value per share estimates and a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 5% since the results and currently trades at $11.19.

Read our full analysis of Ladder Capital’s results here.

Arbor Realty Trust (NYSE: ABR)

With roots dating back to 2003 and a focus on the stability of multifamily housing, Arbor Realty Trust (NYSE: ABR) is a specialized lender that provides financing solutions for multifamily and commercial real estate while also originating and servicing government-backed mortgage loans.

Arbor Realty Trust reported revenues of $134.2 million, down 16.5% year on year. This result lagged analysts' expectations by 1.1%. Overall, it was a softer quarter as it also recorded a significant miss of analysts’ EPS estimates.

The stock is up 1.8% since reporting and currently trades at $11.25.

Read our full, actionable report on Arbor Realty Trust here, it’s free.

AGNC Investment (NASDAQ: AGNC)

Born during the 2008 financial crisis when mortgage markets were in turmoil, AGNC Investment (NASDAQ: AGNC) is a real estate investment trust that primarily invests in mortgage-backed securities guaranteed by U.S. government agencies or enterprises.

AGNC Investment reported revenues of $78 million, down 83.3% year on year. This number missed analysts’ expectations by 73.6%. It was a slower quarter as it also produced a slight miss of analysts’ tangible book value per share estimates.

The stock is up 13.5% since reporting and currently trades at $9.28.

Read our full, actionable report on AGNC Investment here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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