Redwood Trust (RWT) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
Redwood Trust (RWT) reported $20 million in revenue for the quarter ended September 2023, representing a year-over-year decline of 42.9%. EPS of $0.09 for the same period compares to $0.16 a year ago.
The reported revenue represents a surprise of -26.95% over the Zacks Consensus Estimate of $27.38 million. With the consensus EPS estimate being $0.16, the EPS surprise was -43.75%.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: $20 million versus the five-analyst average estimate of $27.40 million.
Other income, net: $2 million versus the five-analyst average estimate of $4.70 million.
Total non-interest income, net: -$10 million compared to the $27.85 million average estimate based on five analysts.
Mortgage banking activities, net: $19 million compared to the $24.30 million average estimate based on five analysts.
Business purpose mortgage banking activities, net: $10 million versus $11.66 million estimated by four analysts on average.
Residential mortgage banking activities, net: $9 million versus the four-analyst average estimate of $11.84 million.
Total interest income: $177 million compared to the $183.48 million average estimate based on three analysts.
Investment fair value changes, net: -$31 million compared to the -$1.58 million average estimate based on three analysts.
View all Key Company Metrics for Redwood Trust here>>>
Shares of Redwood Trust have returned -5.3% over the past month versus the Zacks S&P 500 composite's -3.6% 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.
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Redwood Trust, Inc. (RWT) : Free Stock Analysis Report
