EFC Earnings Prediction
The chart below shows how EFC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, EFC sees a -0.09% change in stock price 10 days leading up to the earnings, and a -0.64% change 10 days following the report. On the earnings day itself, the stock moves by -0.02%. This data can give you a slight idea of what to expect for the next quarter's release.
EFC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
114.33M
4.45%
-12.95%
Gross Margin
--
--
--
Operating Margin
44.98%
-19.78%
-25.08%
Net Margin
20.40%
70.71%
-55.40%
EPS
0.18
80.00%
-70.97%
No Data Available
EFC Earnings Analysis
Ellington Financial Inc. Common Stock Corporation (EFC.N) Earnings Conference Call
Positive
Adjusted Distributable Earnings Rise: 1. Increased Adjusted Distributable Earnings: Ellington Financial reported adjusted distributable earnings of $0.40 per share for Q3 2024, a $0.07 increase from the previous quarter, successfully covering the $0.39 dividend for the quarter.
Investment Portfolio Expansion: 2. Portfolio Growth: The company's investment portfolio expanded by 26% in Q3, driven by growth in high-yielding loan portfolios, including non-QM, RTL, commercial mortgage bridge, HELOC, and closed-end second lien loans.
Longbridge Segment Recovery: 3. Strong Performance in Longbridge Segment: The Longbridge segment contributed $0.12 per share to adjusted distributable earnings in Q3, marking a significant recovery from a negative contribution earlier in the year, indicating strong potential for future growth.
Securitization Success: 4. Successful Securitizations: Ellington Financial completed two proprietary reverse mortgage securitizations in 2024, achieving incrementally stronger execution than previous deals, which enhances their capital structure and funding capabilities.
Strong Liquidity Position: 5. Robust Cash Position: At the end of Q3, Ellington Financial reported cash plus unencumbered assets totaling $765 million, representing nearly 50% of total equity, providing a strong liquidity buffer for future investments.
Negative
Longbridge Segment Loss Report: 1. Longbridge Segment Loss: The Longbridge segment reported a GAAP net loss of $0.03 per share for Q3, primarily due to losses from interest rate hedges, despite a sequential increase in origination volume by 16.5%.
Commercial Loan Delinquency Rise: 2. Increased Delinquency in Commercial Loans: The percentage of delinquent loans in the commercial mortgage portfolio increased, with four small balance commercial mortgage loans moving to 90+ day delinquencies during the quarter.
Operating Expenses Increase: 3. Operating Expenses Surge: Operating expenses rose by 18% over the quarter, driven largely by a one-time redemption of employee-held options at the Longbridge level, indicating potential for ongoing cost pressures.
Agency Portfolio Decline: 4. Decline in Agency Portfolio: The agency portfolio shrank by 14% sequentially, reflecting a strategic shift but also indicating reduced investment in lower-yielding assets amid market volatility.
Consumer Loan Portfolio Losses: 5. Net Loss on Consumer Loan Portfolio: The company experienced net losses on its consumer loan portfolio and related equity investments, which negatively impacted overall earnings despite strong performance in other areas.
EFC FAQs
How does EFC typically perform around its earnings report dates?
Is Ellington Financial, Inc. (EFC) Q3 2024 Earnings Call Summary positive or negative?
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EFC Earning Call Sentiment
Ellington Financial, Inc. (EFC) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
EFC.N
0.24%Positive
Basic Financial Performance: 4 (Strong ADE growth and dividend coverage); Product Development and Business Update: 4 (Successful securitizations and Longbridge's strong performance); Market Strategy: 3 (Conservative positioning amidst market volatility); Expenses and Financial Health: 3 (Increased expenses due to one-time events, but stable cash); Shareholder Return Plan: 4 (Dividend coverage and ADE increase). The Q&A indicates confidence in future securitizations and Longbridge's potential. Overall, a positive sentiment with a market cap of $1.03 billion suggests a positive stock price reaction in the next two weeks.