Redwood Trust (RWT) Beats Q3 Earnings Estimates

Core Viewpoint - Redwood Trust (RWT) reported quarterly earnings of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, and showing an increase from $0.18 per share a year ago, representing an earnings surprise of +25.00% [1][2] Financial Performance - The company posted revenues of $15 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 50.02%, and down from $25.5 million year-over-year [2] - Over the last four quarters, Redwood Trust has surpassed consensus EPS estimates only once [2] Stock Performance - Redwood Trust shares have declined approximately 14.2% since the beginning of the year, while the S&P 500 has gained 17.2% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $32.47 million, and for the current fiscal year, it is $0.70 on revenues of $104.3 million [7] - The trend of estimate revisions for Redwood Trust was favorable prior to the earnings release, which may influence future stock movements [5][6] Industry Context - The REIT and Equity Trust industry, to which Redwood Trust belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]