Redwood Trust (RWT) Q2 Earnings and Revenues Miss Estimates

Group 1: Earnings Performance - Redwood Trust reported quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.19 per share, but showing an increase from $0.13 per share a year ago, representing an earnings surprise of -5.26% [1] - The company posted revenues of $13.8 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 57.65%, and down from $25.3 million year-over-year [2] - Over the last four quarters, Redwood Trust has surpassed consensus EPS estimates only once [2] Group 2: Stock Performance and Outlook - Redwood Trust shares have declined approximately 7% since the beginning of the year, while the S&P 500 has gained 8.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.20 on revenues of $34.85 million, and $0.75 on revenues of $131.65 million for the current fiscal year [7] Group 3: Industry Context - The REIT and Equity Trust industry, to which Redwood Trust belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The Zacks Rank for Redwood Trust is currently 1 (Strong Buy), suggesting that the shares are expected to outperform the market in the near future [6]