UWM Holdings, a leading mortgage lender based in Pontiac, Michigan, experienced a significant increase in sales during the second quarter of the year. The company’s success can be attributed to a surge in loan originations.
In Q2, UWM Holdings achieved a profit of $7.5 million, equivalent to 8 cents per share. This performance represents a significant improvement compared to a loss of $11.9 million (13 cents per share) in the same period last year.
When considering adjusted earnings, UWM Holdings outperformed expectations, with earnings of 11 cents per share. Analysts surveyed by FactSet had predicted earnings of only 6 cents per share.
The company’s revenue also experienced impressive growth, reaching $587.5 million compared to $161.3 million in the previous year. Analysts had anticipated revenue of $477.3 million.
UWM Holdings’ Chief Executive, Mat Ishbia, expressed his satisfaction with the results and emphasized the company’s ability to remain profitable despite a decline in industry-wide origination volume. Ishbia took the opportunity to highlight UWM’s strategic approach and criticized other management teams for their delayed reactions to market conditions.
Loan origination volume was a key driver of UWM Holdings’ success during the quarter. The company saw an increase from $29.9 billion to $31.8 billion when comparing Q2 of this year to the same period in the previous year. Additionally, loan origination volume in Q2 surpassed the $22.3 billion reported in Q1 of 2023.
The positive financial results have already had an impact on UWM Holdings’ stock performance. Pre-market trading saw shares rise by more than 5%.