Overview

• U.S. mortgage lender's Q1 revenue fell 8% from prior qtr amid volatile interest rates

• Adjusted net loss widened from prior qtr as expenses remained flat

• Loan origination volume declined 5% qtr/qtr, while market share increased to 1.39%

Outlook

• LoanDepot sees Q2 origination volume between $7.25 bln and $9.25 bln

• Company expects Q2 pull-through weighted rate lock volume of $5.75 bln to $7.75 bln

• LoanDepot forecasts Q2 pull-through weighted gain on sale margin of 330-360 basis points

Result Drivers

• INTEREST RATE VOLATILITY - Co said revenue and margins were negatively impacted by volatile interest rates and margin pressure

• MARGIN COMPRESSION - Pull-through weighted gain on sale margin fell 53 bps due to larger loan balances, product mix shifts and market volatility

• MARKETING AND PRODUCTIVITY INITIATIVES - Lower commissions and marketing costs reflected benefits of productivity initiatives, though offset by higher salary-related costs

Company press release: ID:nBwpMzpDa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue		$286.39 mln
Q1 Adjusted Revenue	Miss	$299.25 mln	$309.87 mln (2 Analysts)
Q1 EPS		-$0.16
Q1 Adjusted Net Income	Miss	-$33.62 mln	-$13.42 mln (2 Analysts)
Q1 Net Income		-$54.94 mln
Q1 Adjusted EBITDA		$14.31 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"

• Wall Street's median 12-month price target for loanDepot Inc is $1.80, about 19.2% above its May 4 closing price of $1.51

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

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