UWM Holdings Corp (NYSE:UWMC) shares are trading higher Tuesday after the company announced better-than-expected financial results and issued guidance.
UWM Holdings reported first-quarter revenue of $821.79 million, which beat the $489.78 million estimate, according to data from Benzinga Pro. The company reported quarterly earnings of 22 cents per share, which beat the estimate of 7 cents per share.
First-quarter originations decreased 21% year-over-year to $38.8 billion. However, purchase originations increased 56% year-over-year to $19.1 billion.
UWM Holdings expects second-quarter production to be between $26 billion and $33 billion.
The company said it remains committed to returning value to shareholders via dividends and will continue to assess the right time for further share repurchases. Approximately $218 million remains on the company's previously approved share repurchase program.
Mortgage rates have risen since the Fed began tightening this year in an effort to tame inflation. The average rate on a 30-year fixed mortgage has increased more than 2.5 percentage points year-to-date. It surged to a 5.27% annual percentage rate last week, the highest levels since 2009.
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UWM 52-Week Range: $3.38 - $10.98
The stock was up 9.2% at $3.80 at time of publication.
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