- A fancy valuation and an earnings miss don't make for a good combination for Redwood Trust (RWT -4.1%) this morning. The company last night reported Q4 core earnings of $27M or $0.33 per share vs. $33M and $0.39 earned in Q3. Expectations had been for $0.38. Dividend is $0.28.
- GAAP book value per share of $14.96 at year-end vs. $14.74 three months earlier. With today's decline, the stock trades at $16.31. The stock is still higher by about 50% Y/Y.
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Quarterly Redwood Review: Company continues to expect to generate GAAP earnings in excess of recent annual dividends of $1.12 per share, but the nature of the business means a "lumpy" pace of capital deployment that doesn't always align well with quarterly reports.
- Previously: Redwood Trust misses by $0.05, misses on net interest income (Feb. 23)
- Previously: Redwood Trust declares $0.28 dividend (Feb. 23)