Velocity Financial's prelim Q4 profit rises 70% on higher loan originations
Overview
Real estate loan provider's preliminary Q4 net income rises 70% yr/yr
Preliminary Q4 EPS grows 56% yr/yr
Company's preliminary Q4 loan originations increase 13% yr/yr
Outlook
Velocity Financial plans to leverage 2025 achievements to improve efficiency in 2026
Company notes preliminary results subject to final adjustments
Result Drivers
LOAN ORIGINATIONS - Velocity reported a 13% increase in Q4 loan originations, contributing to higher net income and EPS
MARKET SHARE EXPANSION - CEO Chris Farrar attributed success to growing market share in the underserved investor loan market
NONPERFORMING LOANS - Reduction in nonperforming loans contributed to financial performance, with rates dropping from 10.7% to between 8.5% and 8.6%
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 EPS |
| $0.90 |
|
Q4 Net Income |
| $35 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and 1 "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 Velocity Financial Inc is $22.00, about 13.5% above its January 23 closing price of $19.39
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago
Press Release: ID:nBwbl6NwJa
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