Analysts Estimate Starwood Property Trust (STWD) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - Starwood Property Trust (STWD) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending December 2025, with actual results being crucial for stock price movement [1][3]. Earnings Expectations - The consensus estimate for quarterly earnings is $0.41 per share, reflecting a year-over-year decrease of 14.6%, while revenues are projected to reach $479.3 million, a 5.5% increase from the previous year [3]. - The stock may experience upward movement if earnings exceed expectations, whereas a miss could lead to a decline [2]. Estimate Revisions - Over the past 30 days, the consensus EPS estimate has been revised down by 2.44%, indicating a reassessment by analysts regarding the company's earnings outlook [4]. - The Most Accurate Estimate for Starwood Property Trust is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.64%, suggesting a bearish sentiment among analysts [12]. Historical Performance - In the last reported quarter, Starwood Property Trust was expected to earn $0.45 per share but only achieved $0.40, resulting in a surprise of -11.11% [13]. - Over the last four quarters, the company has beaten consensus EPS estimates twice [14]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [10]. - Currently, Starwood Property Trust holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [12]. Conclusion - Starwood Property Trust does not appear to be a strong candidate for an earnings beat, and investors should consider additional factors when making decisions regarding the stock ahead of the earnings release [17].