Overview

* Guild Holdings ( GHLD ) Q2 revenue misses analyst expectations, adjusted EPS beats, per LSEG data

* Adjusted net income for Q2 exceeds analyst estimates, reflecting operational efficiency

Outlook

* Guild anticipates completing pending transaction with Bayview

* Company does not provide specific financial guidance for future quarters

Result Drivers

* ORIGINATION GROWTH - Co reports 44% qtr-over-qtr and 15% yr-over-yr growth in originations, driven by purchase originations

* IMPROVED PROFITABILITY - Adjusted net income and adjusted EBITDA reached highest levels since 2021, indicating operational efficiency

* SERVICING CHALLENGES - Valuation adjustments of MSRs led to losses, reflecting interest rate volatility

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $279.40 $314.70

Revenue mln mln (2

Analysts

)

Q2 Beat $0.66 $0.43 (6

Adjusted Analysts

EPS )

Q2 EPS $0.3

Q2 Beat $41.40 $27.20

Adjusted mln mln (3

Net Analysts

Income )

Q2 Net $18.70

Income mln

Q2 $58 mln

Adjusted

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the consumer lending peer group is "buy."

* Wall Street's median 12-month price target for Guild Holdings Co ( GHLD ) is $15.50, about 28.7% below its August 6 closing price of $19.95

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)