Redwood earnings under pressure

Q2 estimated REIT taxable income of $14M or $0.17 per share vs. $15M and $0.19 in Q1, $20M and $0.25 a year ago. Dividend is $0.28.

Book value per share of $15.03 vs. $15.14 at end of Q1 and $14.69 a year ago. Last night's RWT close of $19.43 is nearly 1.3x book.

From the must-read Redwood Review: "Our near-term quarterly earnings remain under pressure and are lagging the progress we see in our operations. This fact is not lost on us."

The management team is confident margin pressure impacting the entire residential mortgage industry will subside as capacity and pricing move back in line with origination volume.

Previously: Redwood Trust misses by $0.16, misses on revenue

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