CIM Earnings Prediction
The chart below shows how CIM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CIM sees a +2.24% change in stock price 10 days leading up to the earnings, and a -1.94% change 10 days following the report. On the earnings day itself, the stock moves by -2.33%. This data can give you a slight idea of what to expect for the next quarter's release.
CIM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
189.33M
-0.36%
-4.46%
Gross Margin
--
--
--
Operating Margin
24.01%
82.03%
-9.70%
Net Margin
29.93%
57.86%
-54.18%
EPS
0.41
412.50%
-69.85%
No Data Available
CIM Earnings Analysis
Chimera Investment Corporation Corporation (CIM.N) Earnings Conference Call
Positive
Chimera successfully completed its first unsecured debt offering and received an investment-grade rating on the debt.
The company issued $65 million of 9% unsecured senior notes, maturing in five years and callable at its option on or after May 15, 2026.
Egan Jones, a nationally recognized statistical rating organization, assigned a BBB investment grade rating.
Chimera raised its dividend for the first time since March 2021.
The dividend was increased from $0.33 to $0.35 per share, representing a 6% increase.
This demonstrates the company's confidence in its financial position and future prospects.
Chimera made strategic investments in agency CMO floaters, guaranteed senior SLST securities, and non-agency subordinate bonds.
Approximately $377 million was deployed in agency CMO floaters, aiming to generate income and liquidity.
Investments in guaranteed senior SLST securities and non-agency subordinate bonds are expected to yield low to mid-teen returns and low double-digit returns, respectively.
Chimera sponsored its first RPL securitization since May 2023, facilitating the purchase of re-performing loans.
The securitization, SIM 2024-R1, involved senior securities representing 75% of the capital structure, sold in a private placement to institutional investors.
The company retained subordinate notes and interest-only securities, further diversifying its investment portfolio.
Despite market volatility and rising interest rates, Chimera's book value remained relatively flat for the quarter and the company maintained a low recourse leverage.
The company's ability to navigate challenging market conditions demonstrates its resilience and risk management capabilities.
Chimera's focus on maintaining balance in its capital structure and liquidity positions it well for future opportunities.
Negative
- Despite market volatility and interest rate fluctuations, the company's book value remained relatively flat for the period.
- The labor market showed signs of cooling, with the non-farm payroll number coming in weaker than expected, and the unemployment rate ticking up to a three-year high.
- Inflation is still trending above the Federal Reserve's desired rate, impacting the overall economic environment.
- The company's return on book value was 1.4% for the quarter, which may be considered lower than expected in a challenging market environment.
- Market uncertainties and potential interest rate cuts by the Fed could lead to additional volatility and risks for the company's investments.
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CIM Earning Call Sentiment
Chimera Investment Corporation (CIM) Q2 2024 Earnings Call Transcript
1.0x
00:00
00:00
CIM.N
-0.39%Positive
The earnings call summary reflects a generally positive sentiment with strong financial performance, a dividend increase, and optimistic guidance on book value and EAD. The Q&A session supports this with positive expectations for rate cuts and book value impact. Despite risks like market volatility and economic weakness, the company's strategies and financial health suggest a positive outlook, particularly given the small-cap nature of the stock.