BUZZ-Mortgage lender UWM slides after Q4 profit misses expectations

Shares of mortgage lender UWM Holdings UWMC.N fall as much as 11.7%; last down 8.6% at $6.02

UWMC posts Q4 adjusted net income of $33 million, or 1 cent/shr, missing Wall Street expectations of 8 cents, according to estimates compiled by LSEG

Q4 revenue came in at $560.2 million, missing expectations of $625.1 million

Piper Sandler says the earnings miss is likely to result in estimates resetting lower for 2025, given expectations for rates remaining elevated, which will likely pressure volumes

Adds that UWMC has potential to see sizable spike in volume if there is larger drop in rates, but stock appears to be pricing in much higher refinancing volumes in near-term

As of last close, UWMC stock up 12.1% YTD