U.S. markets close in 5 hours 30 minutes
  • S&P 500

    4,372.04
    -71.07 (-1.60%)
     
  • Dow 30

    34,460.95
    -408.42 (-1.17%)
     
  • Nasdaq

    14,640.22
    -329.75 (-2.20%)
     
  • Russell 2000

    2,247.14
    -33.86 (-1.48%)
     
  • Crude Oil

    75.55
    +0.10 (+0.13%)
     
  • Gold

    1,736.10
    -15.90 (-0.91%)
     
  • Silver

    22.40
    -0.29 (-1.30%)
     
  • EUR/USD

    1.1697
    -0.0004 (-0.04%)
     
  • 10-Yr Bond

    1.5440
    +0.0600 (+4.04%)
     
  • GBP/USD

    1.3540
    -0.0164 (-1.20%)
     
  • USD/JPY

    111.2500
    +0.2720 (+0.25%)
     
  • BTC-USD

    41,431.57
    -2,199.54 (-5.04%)
     
  • CMC Crypto 200

    1,025.85
    -31.30 (-2.96%)
     
  • FTSE 100

    7,029.23
    -34.17 (-0.48%)
     
  • Nikkei 225

    30,183.96
    -56.10 (-0.19%)
     

Ellington Financial (EFC) Stock Gains on Q2 Earnings Beat

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

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.

Our Take

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 and EPS Surprise
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.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


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
 
BOK Financial Corporation (BOKF) : Free Stock Analysis Report
 
First Horizon National Corporation (FHN) : Free Stock Analysis Report
 
First Republic Bank (FRC) : Free Stock Analysis Report
 
Ellington Financial LLC (EFC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research