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

loanDepot (NYSE:LDI) released its quarterly earnings results on Tuesday. The company reported ($0.17) EPS for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.11), Zacks reports. loanDepot had a negative return on equity of 18.29% and a negative net margin of 5.27%.

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 5×5 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 Stock Down 1.0%

Shares of loanDepot stock traded down $0.02 during trading on Tuesday, reaching $1.50. The company’s stock had a trading volume of 1,535,717 shares, compared to its average volume of 1,765,499. loanDepot has a 52-week low of $1.02 and a 52-week high of $5.05. The firm’s 50-day moving average is $1.62 and its two-hundred day moving average is $2.25. The company has a debt-to-equity ratio of 8.22, a current ratio of 1.14 and a quick ratio of 1.14.

Analyst Ratings Changes

A number of equities analysts have commented on LDI shares. Zacks Research cut shares of loanDepot from a “hold” rating to a “strong sell” rating in a research note on Wednesday, March 18th. Weiss Ratings reissued a “sell (d-)” rating on shares of loanDepot in a research note on Tuesday, April 21st. The Goldman Sachs Group set a $2.40 price target on shares of loanDepot in a research note on Tuesday, January 6th. Finally, BTIG Research reissued a “neutral” rating on shares of loanDepot in a research note on Wednesday, March 11th. Two analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Strong Sell” and a consensus price target of $2.38.

Institutional Investors Weigh In On loanDepot

Institutional investors have recently made changes to their positions in the business. Invesco Ltd. bought a new stake in loanDepot during the 1st quarter valued at $44,000. Goldman Sachs Group Inc. raised its holdings in loanDepot by 30.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 366,435 shares of the company’s stock valued at $436,000 after buying an additional 85,129 shares during the last quarter. Jane Street Group LLC bought a new stake in loanDepot during the 1st quarter valued at $122,000. Geode Capital Management LLC raised its holdings in loanDepot by 134.4% during the 2nd quarter. Geode Capital Management LLC now owns 1,925,712 shares of the company’s stock valued at $2,446,000 after buying an additional 1,104,021 shares during the last quarter. Finally, New York State Common Retirement Fund bought a new stake in loanDepot during the 2nd quarter valued at $98,000. Hedge funds and other institutional investors own 39.39% of the company’s stock.

loanDepot Company Profile

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.