Redwood Trust Reports Better-Than-Expected Revenue Despite Missed Non-GAAP EPS
April 28, 2023
Trending News ☀️
Redwood Trust ($NYSE:RWT) Inc., a real estate investment trust based in Mill Valley, California, has recently reported better-than-expected revenue despite missing its non-GAAP earnings per share (EPS) projection. Redwood Trust reported revenue of $47 million, exceeding the expected $36.22 million, while its non-GAAP EPS of $0.11 fell short of the expected $0.18. Redwood Trust focuses on providing liquidity to the residential mortgage market, along with investing in and managing whole loan investments and mortgage-backed securities. The positive revenue report is a promising indication of Redwood Trust’s performance as the company continues to navigate a challenging economic climate.
Investors have responded positively to the news, pushing shares higher in after-hours trading. Following the release of the financial results, Redwood Trust’s stock rose by more than one percent.
Share Price
The company opened at $6.4 and closed at $6.6, up by 3.6% from its prior closing price of $6.4. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Redwood Trust. More…
| Total Revenues | Net Income | Net Margin |
| -26.94 | -167.85 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Redwood Trust. More…
| Operations | Investing | Financing |
| -139.14 | 213.89 | -276.87 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Redwood Trust. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.03k | 11.95k | 9.55 |
Key Ratios Snapshot
Some of the financial key ratios for Redwood Trust are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
As GoodWhale, we recently conducted an analysis of REDWOOD TRUST‘s financials. We found that REDWOOD TRUST’s Star Chart health score is 3/10. This indicates that REDWOOD TRUST is less likely to remain safe in the event of a crisis without the risk of bankruptcy. We also classified REDWOOD TRUST as a ‘cow’, meaning that it has a history of paying consistent and sustainable dividends. For potential investors, REDWOOD TRUST may be an ideal option. It is strong in terms of dividend, moderate when it comes to asset, and weak in terms of growth and profitability. Such investors should be aware of the risks associated with the company before investing, but can be confident that dividends will be paid out consistently. More…
Peers
In the world of real estate investment trusts, or REITs, competition is fierce. Among the top competitors are Redwood Trust Inc, Cherry Hill Mortgage Investment Corp, Granite Point Mortgage Trust Inc, and MFA Financial Inc. All four companies are publicly traded on the stock market and offer investors a way to invest in the real estate market without actually owning property.
– Cherry Hill Mortgage Investment Corp ($NYSE:CHMI)
Cherry Hill Mortgage Investment Corporation, a real estate investment trust, acquires, invests in, and manages residential mortgage assets in the United States. It operates through servicing related revenue and investment portfolio income sources. The company services residential mortgage loans; and invests in, finances, and manages a portfolio of residential mortgage loans, including non-performing loans. Cherry Hill Mortgage Investment Corporation was founded in 2012 and is headquartered in Horsham, Pennsylvania.
– Granite Point Mortgage Trust Inc ($NYSE:GPMT)
Granite Point Mortgage Trust Inc is a real estate investment trust that focuses on originating, financing, and managing senior floating rate commercial mortgage loans. The company has a market cap of 350.75M as of 2022. It is a publicly traded company on the New York Stock Exchange and is headquartered in New York City.
– MFA Financial Inc ($NYSE:MFA)
MFA Financial Inc is a real estate investment trust that focuses on investing in residential mortgage assets. As of December 31, 2020, the company had a market capitalization of $925.3 million. The company invests in a variety of residential mortgage assets, including whole loans, mortgage-backed securities, and other mortgage-related investments. MFA Financial is headquartered in New York, New York.
Summary
Redwood Trust, Inc. is a financial services company providing mortgage securitization services and other services. Recently, the company reported their non-GAAP earnings per share (EPS) of $0.11, which was lower than the estimated value of $0.18. Despite the profit miss, investors reacted positively to the news, with the stock price rising the same day.
Analysts believe that the company’s strong revenue performance, along with anticipated earnings from its recent securitization deals, could result in better profits in the upcoming quarters. Nevertheless, investors should do their own research and make their own investment decisions regarding this stock.
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