Compared to Estimates, Redwood Trust (RWT) Q2 Earnings: A Look at Key Metrics
Redwood Trust (RWT) reported $26 million in revenue for the quarter ended June 2023, representing a year-over-year decline of 35%. EPS of $0.14 for the same period compares to -$0.11 a year ago.
The reported revenue represents a surprise of -12.07% over the Zacks Consensus Estimate of $29.57 million. With the consensus EPS estimate being $0.10, the EPS surprise was +40.00%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Redwood Trust performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net interest income: $26 million versus the five-analyst average estimate of $29.61 million.
Other income /expense: $4 million compared to the $4.72 million average estimate based on five analysts.
Total non-interest income, net: $17 million versus $23.96 million estimated by five analysts on average.
Business purpose mortgage banking activities, net: $9 million compared to the $12.85 million average estimate based on four analysts.
Total interest income: $179 million versus the three-analyst average estimate of $182.08 million.
Residential mortgage banking activities, net: $7 million versus the three-analyst average estimate of $3.02 million.
Investment fair value changes, net: -$5 million compared to the $5.17 million average estimate based on three analysts.
View all Key Company Metrics for Redwood Trust here>>>
Shares of Redwood Trust have returned +8.6% over the past month versus the Zacks S&P 500 composite's +5.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Redwood Trust, Inc. (RWT) : Free Stock Analysis Report
