Redwood Trust (RWT) Lags Q1 Earnings and Revenue Estimates

Core Viewpoint - Redwood Trust reported quarterly earnings of $0.14 per share, missing the Zacks Consensus Estimate of $0.17 per share, but showing an improvement from $0.08 per share a year ago, indicating a -17.65% earnings surprise [1] - The company posted revenues of $27.9 million for the quarter, missing the consensus estimate by 10.89%, compared to $24 million in the same quarter last year [2] Earnings Performance - Over the last four quarters, Redwood Trust has surpassed consensus EPS estimates two times [2] - The company had an earnings surprise of -18.75% in the previous quarter, where it was expected to post earnings of $0.16 per share but delivered $0.13 [1] Stock Performance - Redwood Trust shares have declined approximately 4.8% since the beginning of the year, while the S&P 500 has seen a decline of 5.5% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates for the upcoming quarter at $0.20 on revenues of $30.55 million, and $0.82 on revenues of $126.96 million for the current fiscal year [7] - The estimate revisions trend for Redwood Trust is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, suggesting expected outperformance in the near future [6] Industry Context - The REIT and Equity Trust industry, to which Redwood Trust belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential challenges ahead [8]