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LoanDepot reports Q4 EPS (46c), consensus (26c)
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LoanDepot reports Q4 EPS (46c), consensus (26c)

Reports Q4 adjusted revenue $188.5M, consensus $195.28M. "2022 was a year of dramatic volatility and extreme challenge for the mortgage and broader housing markets," said CEO Frank Martell. "Virtually no part of the housing ecosystem was left unaffected as participants in the housing market grappled with substantial and rapid increases in the cost of home loans, the cumulative impact of significant home price appreciation over the past four to five years driven by structural supply and demand imbalances, as well as the depressive impact of high inflation on available household incomes..In response to unprecedented market conditions, loanDepot had to reset its cost structure during 2022. When we announced Vision 2025, we established a goal of reducing our expenses by an annualized $375M-$400M. During the year, we exceeded the expense reduction goal by more than 25%. The size of our targeted reductions and the bias for speed of implementation reflect just how unique and sizable this market downturn has been. We believe that the mortgage market will remain challenged in 2023 and we must remain vigilant and respond quickly to unfavorable changes in the market. We plan to continue to reduce our costs and optimize our operating model. With a sizable cash balance, we believe we are positioned to continue to invest in our people and platforms, as we benefit from ongoing industry consolidation."

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