Two Harbors Investment’s Q3 Non-GAAP EPS falls short

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Two Harbors Investment ($NYSE:TWO)’s Q3 Non-GAAP EPS of $0.64 misses by $0.15. Two Harbors is a mortgage real estate investment trust that invests in residential mortgage-backed securities , commercial mortgage-backed securities , and other mortgage-related investments. The company’s Q3 results were hurt by higher interest rates and a decline in the value of its portfolio. The company’s shares are down 8% so far this year.

Earnings

This is a decrease from the previous quarter’s earnings. Analysts had expected the company to earn more, given the strong performance of the housing market. The company’s stock price fell in after-hours trading on the news.

Share Price

Despite the disappointing earnings report, investors seem to be confident in Two Harbors‘ future prospects. On Tuesday, shares of Two Harbors opened at $14.80 and closed at $14.50, down by 0.5% from the prior closing price of $14.60. Investors are likely pleased with the company’s recent string of positive news. With the housing market continuing to rebound, Two Harbors is in a good position to continue to grow its business and generate strong returns for shareholders.

VI Analysis

Companies with strong fundamentals reflect their long-term potential. The VI app makes it easy to analyze a company’s fundamentals. According to the VI Star Chart, TWO HARBORS INVESTMENT is strong in cash flow, dividend, profitability and weak in growth. TWO HARBORS INVESTMENT is classified as a ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends.

Investors interested in such companies may be looking for stability and income. TWO HARBORS INVESTMENT has a high health score of 8/10 with regard to its cash flows and debt, indicating that it is capable of paying off debt and funding future operations.

VI Peers

The company was founded in 2007 and is headquartered in New York, New York. Two Harbors Investment Corp’s competitors include Chimera Investment Corp, Annaly Capital Management Inc, and Ellington Financial Inc. These companies are also involved in the business of investing in mortgage-related assets.

– Chimera Investment Corp ($NYSE:CIM)

Chimera Investment Corporation is a real estate investment trust that primarily invests in mortgage-backed securities. The company has a market cap of $1.45 billion as of 2022. Chimera Investment Corporation is headquartered in New York, New York.

– Annaly Capital Management Inc ($NYSE:NLY)

Annaly Capital Management Inc is a real estate investment trust that primarily focuses on investing in and financing mortgage-backed securities. As of December 31, 2020, the Company’s portfolio consisted of approximately $106.6 billion in assets, including $103.1 billion in residential mortgage-backed securities and $3.5 billion in commercial mortgage-backed securities.

– Ellington Financial Inc ($NYSE:EFC)

Ellington Financial Inc is a mortgage real estate investment trust that acquires, finances, and manages residential and commercial mortgage-backed securities and mortgage loans. The company has a market cap of $817.82 million as of 2022. The company was founded in 2007 and is headquartered in Old Greenwich, Connecticut.

Summary

Two Harbors Investment is a leading real estate investment trust that invests in residential mortgage-backed securities , commercial mortgage-backed securities , and other mortgage-related assets. Two Harbors is headquartered in Minneapolis, Minnesota, and is externally managed by PRIMECAP Management Company. Investing in Two Harbors offers investors several key benefits.

First, Two Harbors provides investors with exposure to the residential and commercial mortgage markets, which are large and growing markets. Second, Two Harbors has a strong track record of delivering strong financial results. The company has consistently generated strong operating cash flows and has a history of paying out regular dividends to shareholders. Third, Two Harbors is a diversified REIT with investments in a variety of property types, including single-family homes, multifamily properties, and commercial real estate. This diversification helps to protect investors from the risks associated with any one particular type of property. Fourth, Two Harbors is externally managed by PRIMECAP Management Company, which is a subsidiary of The Capital Group Companies. PRIMECAP is a highly respected asset management firm with a long track record of success. Finally, Two Harbors offers investors an attractive yield. Overall, Two Harbors is a high-quality REIT that provides investors with exposure to the residential and commercial mortgage markets, strong financial results, and an attractive dividend yield.