TWO Earnings Prediction
The chart below shows how TWO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TWO sees a +0.83% change in stock price 10 days leading up to the earnings, and a +1.97% change 10 days following the report. On the earnings day itself, the stock moves by -0.21%. This data can give you a slight idea of what to expect for the next quarter's release.
TWO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
-51.80M
-109.09%
-119.31%
Gross Margin
--
--
--
Operating Margin
5.84%
-90.57%
-77.64%
Net Margin
3.31%
-93.84%
-84.23%
EPS
-2.42
-186.12%
-662.79%
No Data Available
TWO Earnings Analysis
Two Harbors Investment Corp. Corporation (TWO.N) Earnings Conference Call
Positive
Book Value and Dividend Return: The company's book value at September 30th was $14.93 per common share, including the third quarter common stock dividend of $0.45 per share, representing a 1.3% quarterly economic return on book value.
Total Economic Return Performance: For the first nine months of 2024, we generated a 7.0% total economic return on book value, which demonstrates that our strategy is designed to produce strong returns across market environments.
Comprehensive Income Report: The company generated comprehensive income of $19.3 million or $0.18 per weighted average common share in the third quarter.
Net Servicing Income Performance: Net servicing income was $172 million, reflecting strong performance despite some challenges in the market.
Unused Asset Capacity: We ended the quarter with a total of $610 million in unused MSR asset capacity and $91 million of unused capacity for servicing advances.
Negative
Decline in Book Value: The company's book value decreased from $15.19 per share on June 30th to $14.93 per share on September 30th, indicating a decline in asset value.
Increased Net Interest Expense: Net interest expense increased to $42 million in the third quarter due to higher average borrowing balances, negatively impacting profitability.
Net Servicing Income Decline: Net servicing income was unfavorable compared to the second quarter, decreasing by $4 million due to lower servicing fee collections.
Servicing Asset Losses Decline: Servicing asset losses were $133 million in the quarter, reflecting a decline in rates that drove a larger decrease in servicing assets.
Unused MSR Asset Capacity: The company ended the quarter with $610 million in unused MSR asset capacity, indicating underutilization of resources.
TWO FAQs
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TWO Earning Call Sentiment
Two Harbors Investment Corp. (TWO) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
TWO.N
0.78%Positive
The earnings call presents a mixed picture. While there are positives like a strong static return estimate and a decent economic return, there are notable concerns such as regulatory uncertainty, prepayment risks, and a decline in book value. The Q&A reveals analyst concerns about spreads, book value, and unclear management responses. The market cap suggests moderate sensitivity to news. Overall, the sentiment is balanced, with potential for both positive and negative market reactions, leading to a neutral prediction for stock price movement over the next two weeks.