Rising Interest Rates Rock loanDepot
On a down day for the market, next-generation real estate finance specialist loanDepot (NYSE: LDI) fell 9.2%. The reason why is simple -- the company's latest set of quarterly earnings was published after market hours Tuesday, and they raised some serious concerns about its business.
loanDepot isn't getting its 2022 off to a good start, let's put it that way. For the first quarter of the year, total revenue declined by a worrying 62% year over year to just over $503 million. Loan originations also went south, although not as steeply; they declined by 26% over that one-year stretch to $21.6 billion.
With such a steep fall, it's hard to maintain profitability, and so it was for loanDepot. On the bottom line, the company flipped dramatically into the red with a non-GAAP (adjusted) net loss of almost $82 million, or $0.26 per share. In the year-ago quarter, the company netted a meaty adjusted profit of nearly $320 million.
Source Fool.com
