Analysts' expectations were in a range of 33-55 cents per share, with average of 46 cents per share, excluding special items.
Redwood Trust is firing on all cylinders, with growth accelerating on both residential and commercial mortgage areas, while it is building yet another growth area with Fannie, Freddie and servicing business. According to the Redwood Review, in the first 4 month of the year, it already securitized 6 deals totaling ~3 billion, more than it did the whole year in 2012 (2 billions). Its original 2013 target of $7 billion and the revised target of $8 billion look conservative to me.
Redwood can certainly afford to bring the dividend up significantly if it wants to. With the general market desperate for yield, any dividend increase combined with further business expansion will bring the stock
price up to another level.
The Redwood management team is simply the best in the industry in my opinion. It successfully survived the crisis in 2008/2009, transformed and redefined the companies, expanded into commercial mortgage and jumbo residential businesses. Now it is time for the shareholders to get rewarded for their patience!