TRTX Earnings Prediction
The chart below shows how TRTX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TRTX sees a +4.01% change in stock price 10 days leading up to the earnings, and a +2.61% change 10 days following the report. On the earnings day itself, the stock moves by -1.72%. This data can give you a slight idea of what to expect for the next quarter's release.
TRTX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
81.34M
-9.69%
-1.56%
Gross Margin
--
--
--
Operating Margin
27.00%
66.56%
10.02%
Net Margin
27.29%
140.15%
-8.76%
EPS
0.23
127.71%
-11.54%
No Data Available
TRTX Earnings Analysis
TPG RE Finance Trust, Inc. Common Stock Corporation (TRTX.N) Earnings Conference Call
Positive
Liquidity Strength: 1. Strong Liquidity Position: TRTX reported a robust liquidity of $357 million, providing ample capacity for new investments and growth opportunities.
Net Interest Margin Increase: 2. Increased Net Interest Margin: The net interest margin for the loan portfolio increased to $29.3 million, up from $27.5 million in the previous quarter, reflecting effective capital allocation.
Strong Dividend Support: 3. High Dividend Coverage: The coverage ratio for the $0.24 dividend was 1.7 times for the quarter, indicating strong earnings relative to dividend obligations.
Share Price Surge: 4. Significant Share Price Appreciation: TRTX's share price appreciated by 31.2% in the first nine months of 2024, outperforming peers in the commercial mortgage REIT space.
Loan Origination Success: 5. Active Investment Pipeline: The company originated three loans totaling $204 million during the quarter, demonstrating a strong commitment to capital deployment in attractive sectors.
Negative
Net Income Decline: 1. Decline in Net Income: GAAP net income attributable to common shareholders decreased to $18.7 million in Q3 2024 from $21 million in the prior quarter, reflecting a decrease in credit loss benefit of $4.2 million.
CECL Reserve Decline: 2. Decrease in CECL Reserve: The CECL reserve declined by $0.3 million to $69.3 million from $69.6 million, indicating potential concerns about future credit losses despite solid collateral performance.
Stock Valuation Concerns: 3. High Discount to Book Value: The company's stock is trading at a 27% discount to book value, which translates to a $245 million discount, raising concerns about market perception and valuation.
Office Sector Loan Decline: 4. Significant Office Sector Decline: The office sector has seen a 73% decline in loan representation over the past 11 quarters, indicating a substantial reduction in this segment's performance and attractiveness.
Loan Growth Uncertainty: 5. Limited Loan Growth: Despite a robust liquidity position, the company has not provided specific forward guidance on loan growth, suggesting uncertainty in expanding the loan portfolio amidst market conditions.
TRTX FAQs
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TRTX Earning Call Sentiment
TPG RE Finance Trust, Inc. (TRTX) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
TRTX.N
-1.95%Positive
The earnings call summary indicates a stable financial performance with solid liquidity, a high dividend yield, and positive shareholder returns. Despite a slight decrease in net income, other metrics like net interest margin and distributable earnings improved. The Q&A section highlights management's confidence in leveraging opportunities and stable risk management, despite not providing forward guidance. The share repurchase program and significant share price appreciation further support a positive sentiment. Overall, the company's strategic positioning and financial health suggest a likely positive stock price movement.