Earnings Preview: Redwood Trust (RWT) Q2 Earnings Expected to Decline

Core Viewpoint - Redwood Trust (RWT) is anticipated to report a quarterly earnings per share (EPS) of $0.12, reflecting a year-over-year decline of 14.3% despite an expected revenue increase of 8.2% to $28.13 million [1][2][3]. Earnings Expectations - The consensus outlook indicates a year-over-year decline in earnings for Redwood Trust, which is significant for assessing the company's earnings picture [3]. - The stock price may react positively if actual results exceed expectations, while a miss could lead to a decline [4]. Estimate Revisions - The Zacks Consensus Estimate for the quarter has been revised down by 1.43% over the last 30 days, indicating a collective reassessment by analysts [9]. - The Most Accurate Estimate for Redwood Trust is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.23%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - The current Zacks Rank for Redwood Trust is 3, making it challenging to predict an earnings beat conclusively [15][16]. Historical Performance - Over the last four quarters, Redwood Trust has only beaten consensus EPS estimates once, which may influence future earnings expectations [19].