Core Insights - DigitalBridge (DBRG) reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, and up from $0.06 per share a year ago [1] - The earnings surprise was +33.33%, while the previous quarter saw a loss of $0.10 per share, resulting in a surprise of -211.11% [2] - The company posted revenues of $3.82 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 96.19%, compared to $76.13 million in revenues a year ago [3] Financial Performance - DigitalBridge has surpassed consensus EPS estimates three times over the last four quarters [2] - The company has topped consensus revenue estimates only once in the last four quarters [3] - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $98.1 million, and for the current fiscal year, it is $0.36 on revenues of $235.84 million [8] Market Position - DigitalBridge shares have increased by approximately 12.6% since the beginning of the year, while the S&P 500 has gained 17.2% [4] - The Zacks Rank for DigitalBridge is currently 4 (Sell), indicating expectations of underperformance in the near future [7] - The REIT and Equity Trust industry, to which DigitalBridge belongs, is currently in the top 39% of Zacks industries, suggesting a favorable industry outlook [9]

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]

Core Viewpoint - Franklin BSP (FBRT) reported quarterly earnings of $0.22 per share, missing the Zacks Consensus Estimate of $0.24 per share, but showing an improvement from a loss of $0.1 per share a year ago [1] Group 1: Earnings Performance - The quarterly earnings surprise was -8.33%, and the company had a previous quarter surprise of -12.9% with actual earnings of $0.27 per share against an expectation of $0.31 [1][2] - Over the last four quarters, Franklin BSP has surpassed consensus EPS estimates only once [2] Group 2: Revenue Performance - Franklin BSP posted revenues of $89.55 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 80.54%, compared to $49.67 million in the same quarter last year [2] - The company has topped consensus revenue estimates two times over the last four quarters [2] Group 3: Stock Performance and Outlook - Franklin BSP shares have declined approximately 14.6% since the beginning of the year, while the S&P 500 has gained 17.2% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [3][4] Group 4: Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $57.1 million, and for the current fiscal year, it is $0.70 on revenues of $206.1 million [7] - The estimate revisions trend for Franklin BSP was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Group 5: Industry Context - The REIT and Equity Trust industry is currently in the top 37% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

Core Insights - Blackstone Mortgage Trust (BXMT) reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, but down from $0.49 per share a year ago, indicating an earnings surprise of +26.32% [1] - The company posted revenues of $98.9 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 3.25% and down from $108.35 million year-over-year [2] - Blackstone Mortgage shares have increased by approximately 4.2% since the beginning of the year, underperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - 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 next quarter is $0.26 on revenues of $105.4 million, and for the current fiscal year, it is $0.77 on revenues of $392.26 million [7] Industry Context - The REIT and Equity Trust industry, to which Blackstone Mortgage belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable environment for performance [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][6]

Core Insights - Annaly Capital Management (NLY) reported quarterly earnings of $0.73 per share, exceeding the Zacks Consensus Estimate of $0.72 per share, and up from $0.66 per share a year ago, representing an earnings surprise of +1.39% [1][2] Earnings Performance - Over the last four quarters, the company has consistently surpassed consensus EPS estimates, achieving this four times [2] - For the quarter ended September 2025, Annaly posted revenues of $275.75 million, which fell short of the Zacks Consensus Estimate by 38.31%, compared to revenues of $13.4 million in the same quarter last year [2] Stock Movement and Market Comparison - Annaly shares have increased approximately 15% since the beginning of the year, outperforming the S&P 500's gain of 14.5% [3] Future Earnings Outlook - The company's earnings outlook is crucial for investors, including current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.74 on revenues of $455 million, and for the current fiscal year, it is $2.89 on revenues of $1.4 billion [7] Industry Context - The REIT and Equity Trust industry, to which Annaly belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Core Insights - KKR Real Estate Finance (KREF) reported a quarterly loss of $0.03 per share, missing the Zacks Consensus Estimate of $0.01, and a significant decline from earnings of $0.4 per share a year ago, indicating an earnings surprise of -400.00% [1] - The company posted revenues of $25.33 million for the quarter ended September 2025, which was 10.29% below the Zacks Consensus Estimate and a decrease from $37.01 million in the same quarter last year [2] - KKR Real Estate shares have underperformed the market, losing approximately 15.4% year-to-date compared to the S&P 500's gain of 14.5% [3] Earnings Outlook - 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 next quarter is $0.10 on revenues of $26.77 million, and for the current fiscal year, it is $0.32 on revenues of $116.53 million [7] Industry Context - The REIT and Equity Trust industry, to which KKR Real Estate belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, Franklin BSP (FBRT), is expected to report quarterly earnings of $0.24 per share, reflecting a year-over-year increase of 340%, with revenues anticipated to be $49.6 million, a slight decrease from the previous year [9][10]

Core Viewpoint - AGNC Investment reported quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.38 per share, and showing a decline from $0.43 per share a year ago, indicating an earnings surprise of -7.89% [1][2] Financial Performance - The company posted revenues of $148 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 45.19%, compared to revenues of -$64 million a year ago [2] - Over the last four quarters, AGNC Investment has surpassed consensus EPS estimates only once [2] Stock Performance - AGNC Investment shares have increased by approximately 8.5% since the beginning of the year, while the S&P 500 has gained 13.3% [3] Future Outlook - The company's earnings outlook will be crucial for investors, including 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 $0.38 on revenues of $290.6 million, and for the current fiscal year, it is $1.59 on revenues of $884.6 million [7] Industry Context - The REIT and Equity Trust industry, to which AGNC Investment belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Core Insights - Dynex Capital reported quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.44 per share, and compared to a loss of $0.1 per share a year ago, representing an earnings surprise of -43.18% [1] - The company posted revenues of $30.61 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.62%, compared to year-ago revenues of $0.89 million [2] - Dynex Capital shares have increased by approximately 5.8% since the beginning of the year, while the S&P 500 has gained 13.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $39.23 million, and for the current fiscal year, it is $1.84 on revenues of $108.75 million [7] - The estimate revisions trend for Dynex Capital was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The REIT and Equity Trust industry, to which Dynex Capital belongs, is currently in the bottom 38% of over 250 Zacks industries, suggesting potential challenges for stock performance [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]

Core Viewpoint - The Zacks REIT and Equity Trust industry is experiencing volatility in mortgage rates due to macroeconomic uncertainty, leading to earnings pressure in the near term [1] Industry Overview - The Zacks REIT and Equity Trust industry consists of mortgage REITs (mREITs) that invest in and originate mortgages and mortgage-backed securities (MBS), providing mortgage credit for homeowners and businesses [3] - mREITs typically focus on either residential or commercial mortgage markets, with some investing in both through asset-backed securities [3] - Agency securities, backed by the federal government, are considered safer investments, limiting credit risks [3] - Key revenue metrics for mREITs include net interest margin, which is the spread between interest income on mortgage assets and funding costs [3] Current Challenges - The industry is facing dividend cuts as book values erode due to tightened mortgage spreads and expected higher interest rates, leading to earnings pressure for highly leveraged mREITs [4] - A conservative investment approach is likely to impede returns, as mREITs prioritize risk and liquidity management over growth [5] - Despite a recent Federal Reserve rate cut, mortgage rates remain below the 52-week average of 6.71%, which is driving renewed interest in purchase applications and refinancing activities [6] Industry Performance - The Zacks REIT and Equity Trust industry ranks 185, placing it in the bottom 24% of 243 Zacks industries, indicating underperformance in the near term [7] - The industry's current-year earnings estimate has decreased by 8.1% over the last year, reflecting a negative earnings outlook [8] - Over the past year, the industry has declined by 6.2%, while the broader Zacks Finance sector rose by 17.1% and the S&P 500 grew by 18.2% [10] Valuation Metrics - The industry is currently trading at a trailing 12-month price-to-book (P/BV) ratio of 1.00X, compared to the S&P 500's 8.8X [13] - The Zacks Finance sector's trailing 12-month P/BV is 4.32X, indicating that the REIT and Equity Trust industry is trading at a significant discount [15] Company Highlights - **Annaly Capital Management (NLY)**: Focuses on prudent asset selection and effective capital allocation, with a diversified investment strategy that includes Agency MBSs and non-agency assets [17][18]. The company's 2025 earnings are estimated at $2.89 per share, reflecting a 7% year-over-year increase [19] - **Apollo Commercial Real Estate Finance (ARI)**: Engages in originating and managing commercial mortgage loans, benefiting from a robust origination pipeline and disciplined capital recycling strategy [22][23]. The company's 2025 earnings estimates are $1.04 per share, indicating a 141.9% year-over-year increase [24] - **Ellington Financial (EFC)**: Invests in a diverse array of financial assets, including residential and commercial mortgage loans, and employs dynamic hedging strategies to manage risks [27][29]. The company's 2025 earnings estimates are $1.74 per share, reflecting a 19.2% year-over-year growth [30]

Core Insights - Invesco Mortgage Capital (IVR) stock increased by 2.91% to $7.78, outperforming the S&P 500's gain of 0.34% [1] - The company is expected to report an EPS of $0.53, reflecting a 22.06% decrease year-over-year, while revenue is forecasted at $21.44 million, a significant increase of 185.49% from the previous year [2] - For the full year, earnings are projected at $2.25 per share, down 21.88% from the prior year, with revenue expected to rise by 127.85% to $83.91 million [3] Company Performance - Over the past month, Invesco Mortgage Capital shares have declined by 2.58%, underperforming the Finance sector's gain of 1.52% and the S&P 500's gain of 3.54% [1] - The Zacks Consensus EPS estimate has remained stable over the last month, and the company currently holds a Zacks Rank of 2 (Buy) [5] Valuation Metrics - Invesco Mortgage Capital is trading at a Forward P/E ratio of 3.36, which is significantly lower than the industry average Forward P/E of 8.71 [6] - The REIT and Equity Trust industry ranks in the bottom 21% of all industries, with a current Zacks Industry Rank of 196 [6] Analyst Insights - Recent revisions to analyst forecasts are crucial as they reflect near-term business trends, with positive revisions indicating analyst optimism about the company's profitability [3] - The Zacks Rank system, which assesses estimated changes, has shown that stocks rated 1 (Strong Buy) have historically provided an average annual return of +25% since 1988 [5][4]