NexPoint (NREF) Misses Q1 Earnings Estimates

Core Viewpoint - NexPoint (NREF) reported quarterly earnings of $0.41 per share, missing the Zacks Consensus Estimate of $0.46 per share, compared to a loss of $0.46 per share a year ago, indicating an earnings surprise of -10.87% [1] Group 1: Earnings Performance - Over the last four quarters, NexPoint has surpassed consensus EPS estimates three times [2] - The company posted revenues of $11.51 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 19.39%, compared to year-ago revenues of -$12.81 million [2] - The current consensus EPS estimate for the coming quarter is $0.50 on revenues of $10.17 million, and for the current fiscal year, it is $2 on revenues of $40.55 million [7] Group 2: Stock Performance and Outlook - NexPoint shares have declined approximately 6.8% since the beginning of the year, while the S&P 500 has decreased by 5.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] - The estimate revisions trend for NexPoint is mixed, and changes in earnings expectations may occur following the recent earnings report [6] Group 3: Industry Context - The REIT and Equity Trust industry, to which NexPoint belongs, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]