Ellington Financial Q3 adjusted EPS misses analyst estimates
Overview
US mortgage REIT's Q3 adjusted EPS missed analyst expectations
Q3 adjusted net income also missed analyst expectations
Company issued $150 mln in senior unsecured notes and repurchased shares after quarter end
Outlook
Company did not provide specific financial guidance for the current quarter or full year
Result Drivers
SECURITIZATION AND LOAN ORIGINATIONS - Co said results were driven by contributions from retained tranches of non-QM and Agency-eligible securitizations, commercial mortgage bridge loans, and corporate credit, with loan originator investments, particularly LendSure, delivering standout results
HEDGING GAINS - Interest rate and credit hedges helped offset late-quarter market volatility, according to CEO Laurence Penn
LONGBRIDGE SEGMENT MIXED - Higher origination volumes and hedging gains outweighed narrower origination margins and lower proprietary securitization gains in the Longbridge segment
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EPS | Miss | $0.45 | $0.47 (7 Analysts) |
Q3 EPS | $0.31 | ||
Q3 Adjusted Net Income | Miss | $58 mln | $59.64 mln (6 Analysts) |
Q3 Net Income | $40.40 mln | ||
Q3 Net Interest Margin | 3.55% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialized reits peer group is "buy"
Wall Street's median 12-month price target for Ellington Financial Inc. is $14.50, about 22.4% above its November 4 closing price of $11.85
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago
Reuters Recommended Reads
Nov 4 - MFA Financial Q3 adjusted EPS misses estimates on market volatility
Nov 3 - Redwood Trust Q3 loss widens
Nov 3 - Claros Mortgage Trust posts Q3 net loss
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)