loanDepot (NYSE:LDI) Posts Quarterly Earnings Results, Misses Estimates By $0.11 EPS

Key Points

• loanDepot reported Q1 EPS of ($0.17), missing estimates by $0.11 and recording an adjusted net loss of $34 million with gain-on-sale margin compressed to 271 bps.
• Liquidity is under pressure—cash fell to $277 million (down $60M QoQ) and management is actively addressing upcoming debt maturities with no definitive resolution yet.
• Management is rebuilding operations—adding 100+ loan officers, reopening wholesale and expanding a partnership with Figure (including a fast-ramping 5x5 HELOC)—and expects Q2 gain-on-sale margins of 330–360 bps despite higher projected expenses.

loanDepot (NYSE:LDI - Get Free Report) issued its earnings results on Tuesday. The company reported ($0.17) EPS for the quarter, missing the consensus estimate of ($0.06) by ($0.11), Zacks reports. loanDepot had a negative net margin of 5.27% and a negative return on equity of 18.29%.

Here are the key takeaways from loanDepot's conference call:

• The company is executing a rebuild—adding 100+ loan officers, reopening its wholesale channel, and reporting early traction from a completed partnership with Figure and other digital/AI investments that management says should drive market-share and efficiency gains.
• LoanDepot reported an adjusted net loss of $34 million in Q1 (worse than Q4), with gain-on-sale margin compressed to 271 bps due to interest-rate volatility and a product mix shift that reduced revenue versus the prior quarter.
• The 5x5 HomeLoan (HELOC) integrated with Figure’s underwriting tech funds in ~5 days, is ramping quickly, carries higher gain-on-sale margins and lower production cost, and is expected to be a meaningful contributor to future earnings.
• Q2 guidance calls for origination volume of $7.25B–$9.25B and a materially higher gain-on-sale margin of 330–360 bps (HELOCs are excluded from lock volume reporting), but management also expects higher quarter-over-quarter expenses.
• Liquidity and balance-sheet pressure remain — cash fell to $277 million (down $60M QoQ) and management is “actively” addressing upcoming debt maturities amid turbulent markets, with no definitive resolution yet.

loanDepot Price Performance

NYSE LDI traded down $0.02 on Tuesday, reaching $1.50. The company had a trading volume of 1,535,717 shares, compared to its average volume of 1,765,499. The company's fifty day moving average is $1.62 and its 200 day moving average is $2.25. loanDepot has a 52-week low of $1.02 and a 52-week high of $5.05. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 8.22.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on LDI. Weiss Ratings reiterated a "sell (d-)" rating on shares of loanDepot in a report on Tuesday, April 21st. The Goldman Sachs Group set a $2.40 price target on shares of loanDepot in a report on Tuesday, January 6th. BTIG Research reiterated a "neutral" rating on shares of loanDepot in a report on Wednesday, March 11th. Finally, Zacks Research downgraded shares of loanDepot from a "hold" rating to a "strong sell" rating in a report on Wednesday, March 18th. Two analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Strong Sell" and an average target price of $2.38.

Institutional Trading of loanDepot

Hedge funds have recently added to or reduced their stakes in the stock. Cerity Partners LLC bought a new stake in shares of loanDepot in the second quarter valued at approximately $116,000. Price T Rowe Associates Inc. MD grew its stake in loanDepot by 26.7% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 52,286 shares of the company's stock valued at $109,000 after acquiring an additional 11,003 shares in the last quarter. Balyasny Asset Management L.P. grew its stake in loanDepot by 227.5% during the fourth quarter. Balyasny Asset Management L.P. now owns 49,381 shares of the company's stock valued at $102,000 after acquiring an additional 34,305 shares in the last quarter. New York State Common Retirement Fund purchased a new position in loanDepot during the second quarter valued at approximately $98,000. Finally, Quadrature Capital Ltd purchased a new position in loanDepot during the fourth quarter valued at approximately $90,000. Institutional investors own 39.39% of the company's stock.

About loanDepot

loanDepot, Inc NYSE: LDI is a leading non-bank consumer lender that provides a broad range of home and personal financing products through a digitally enabled platform. The company specializes in originating and servicing purchase and refinance mortgage loans, home equity lines of credit (HELOCs), and personal loans. Through its proprietary mello™ technology suite, loanDepot streamlines the application, underwriting, and closing processes for borrowers and real estate professionals, emphasizing speed, transparency, and a seamless digital experience.

Founded in 2010 by Anthony Hsieh, loanDepot has grown rapidly to become one of the largest independent mortgage lenders in the United States.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.