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Ellington Financial Inc.’s EFC shares gained 1.8%, following the release of its second-quarter 2020 results. Core earnings per share of 39 cents surpassed the Zacks Consensus Estimate of 24 cents. The figure represents a decline of 15.2% from the previous quarter’s reported number.
Results reflected a decline in net interest income along with higher expenses. Nevertheless, the balance sheet position remained strong in the quarter.
Net income attributable to common shareholders (GAAP basis) was $37.3 million or 85 cents per share against net loss of $129.4 million or $3.04 per share recorded in the previous quarter.
Net Interest Income Declines, Costs Rise
Total net interest income decreased 18.1% sequentially to $24.6 million.
Total other income was $23.7 million against other losses of $142.2 million recorded in the previous quarter.
Total expenses increased 17% from the previous quarter to $12 million. The rise was due to an increase in almost all cost components except for servicing expenses and other expenses.
As of Jun 30, 2020, cash and cash equivalents (including restricted cash) were $146.7 million, up from $136.9 million recorded as of Mar 31, 2020. Total assets amounted to $3.23 billion, down 14.3% sequentially.
Total shareholders' equity was $800.9 million, up 3.4% from the Mar 31, 2020-level.
Ellington Financial put up a decent performance during the second quarter. The company’s cash position remained strong. However, elevated expenses are expected to hurt the bottom line to some extent in the near term.
Ellington Financial LLC Price, Consensus and EPS Surprise
Ellington Financial LLC price-consensus-eps-surprise-chart | Ellington Financial LLC Quote
Currently, Ellington Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Finance Stocks
First Republic Bank FRC delivered an earnings surprise of 16.7% in second-quarter 2020, aided by solid top-line strength. Earnings per share of $1.40 surpassed the Zacks Consensus Estimate of $1.20. Additionally, the bottom line climbed 12.9% from the year-ago quarter.
First Horizon National Corporation FHN reported second-quarter 2020 adjusted earnings per share of 20 cents, missing the Zacks Consensus Estimate of 21 cents. Further, the bottom line was 52.4% lower than the year-ago figure.
BOK Financial BOKF reported a negative earnings surprise of 21.4% for the June-end quarter. Earnings per share of 92 cents lagged the Zacks Consensus Estimate of $1.17. Further, the bottom line compared unfavorably with the prior-year quarter’s $1.93 per share.
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