Redwood Trust (RWT) Q4 Earnings Lag Estimates

Core Viewpoint - Redwood Trust reported quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of$ 0.16 per share, but showing an improvement from $0.05 per share a year ago, indicating a mixed performance in earnings expectations [1][2]. Earnings Performance - The company experienced an earnings surprise of -18.75% for the recent quarter, while it had a positive surprise of 28.57% in the previous quarter [1][2]. - Over the last four quarters, Redwood Trust has surpassed consensus EPS estimates two times [2]. Revenue Insights - Redwood Trust posted revenues of$ 27.6 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 6.15%, compared to $20 million in the same quarter last year [2]. - The company has also topped consensus revenue estimates two times over the last four quarters [2]. Stock Performance - Since the beginning of the year, Redwood Trust shares have declined by approximately 1.4%, contrasting with the S&P 500's gain of 2.9% [3]. Future Outlook - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates at$ 0.18 for the coming quarter and $0.78 for the current fiscal year [4][7]. - The estimate revisions trend for Redwood Trust is currently mixed, resulting in a Zacks Rank 3 (Hold), suggesting the shares are expected to perform in line with the market in the near future [6]. Industry Context - The REIT and Equity Trust industry, to which Redwood Trust belongs, is currently positioned in the bottom 46% of over 250 Zacks industries, indicating potential challenges ahead [8].