RWT Earnings Prediction
The chart below shows how RWT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RWT sees a -0.67% change in stock price 10 days leading up to the earnings, and a +0.44% change 10 days following the report. On the earnings day itself, the stock moves by -0.80%. This data can give you a slight idea of what to expect for the next quarter's release.
RWT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
259.50M
46.51%
7.56%
Gross Margin
--
--
--
Operating Margin
14.77%
523.21%
54.82%
Net Margin
5.71%
132.83%
-11.34%
EPS
0.09
131.03%
-10.00%
No Data Available
RWT Earnings Analysis
Redwood Trust, Inc. Corporation (RWT.N) Earnings Conference Call
Positive
Mortgage Banking Performance Surge: Our combined mortgage banking returns were the highest in over three years as each business unlocked operating leverage to achieve strong results.
Dividend Increase Announcement: We recently increased our common dividend for the first time since 2021, up over 6% to $0.17 per share for the third quarter, reflecting continued growth in our operating activities.
Quarterly GAAP Earnings Report: We reported GAAP earnings of $13 million or $0.09 per share for the third quarter compared to $14 million or $0.10 per share in the prior quarter.
Earnings Distribution Increase: Our earnings available for distribution or EAD reached $25 million or $0.18 per share for the third quarter, up from $19 million or $0.13 per share in the prior quarter.
Mortgage Banking Returns Surge: The residential consumer mortgage banking segment achieved a return on capital of 30%, up from 16% in Q2, while the Residential Investor segment EAD return on capital was 58% compared to 13% last quarter.
Negative
Earnings Comparison Q3: GAAP earnings of $13 million or $0.09 per share for the third quarter compared to $14 million or $0.10 per share in the prior quarter.
Earnings Distribution Increase: Our earnings available for distribution or EAD reached $25 million or $0.18 per share for the third quarter, up from $19 million or $0.13 per share in the prior quarter.
Loan Lock Decline: We reported a decline in total loans locked during Q3, down to $2.2 billion compared to $2.7 billion in the second quarter, essentially flat when adjusting for the large pool of seasoned hybrid arms we discussed on our second quarter call.
Delinquency Rate Increase: Delinquencies increased approximately 1% from the second quarter as resolutions were offset by a small number of loans entering delinquent status.
Increased G&A Expenses: General and administrative or G&A expenses were $3 million higher on the quarter.
RWT FAQs
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RWT Earning Call Sentiment
Redwood Trust, Inc. (RWT) Q3 2024 Earnings Call Transcript
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RWT.N
-1.71%Positive
The earnings call reveals strong financial performance with increased EAD, dividend growth, and robust capital deployment. Despite slight GAAP earnings decline, the company shows resilience with a positive return on capital and economic return nearing 7%. The Q&A highlighted management's confidence in leverage quality and dividend sustainability. Although delinquencies rose slightly, the overall sentiment is positive, driven by strong mortgage banking returns and strategic capital allocation. The recent dividend increase and high return on capital suggest positive stock movement in the short term.