Compared to Estimates, Redwood Trust (RWT) Q2 Earnings: A Look at Key Metrics

Core Insights - Redwood Trust reported revenue of $13.8 million for the quarter ended June 2025, a decrease of 45.5% year-over-year, and EPS of $0.18, up from $0.13 in the same quarter last year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $32.59 million, resulting in a surprise of -57.65%, while the EPS also missed the consensus estimate of $0.19 by -5.26% [1] Financial Performance Metrics - Net interest income was reported at $13.8 million, significantly below the estimated $32.62 million by analysts [4] - Non-interest income from Sequoia mortgage banking activities was $24.4 million, exceeding the average estimate of $20.89 million [4] - Total non-interest income was $36.7 million, compared to the average estimate of $51.98 million [4] - Non-interest income from mortgage banking activities was $40.9 million, surpassing the estimated $33.19 million [4] - HEI income reported a loss of $12.9 million, contrasting with the estimated income of $9 million [4] - CoreVest mortgage banking activities generated non-interest income of $16.5 million, above the average estimate of $12.3 million [4] Stock Performance - Over the past month, shares of Redwood Trust have returned +0.5%, while the Zacks S&P 500 composite increased by +3.4% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential outperformance against the broader market in the near term [3]