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Ellington Financial Q3 adjusted EPS misses analyst estimates

By Reuters News


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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