Mortgage investment firm Ellington Financial (NYSE: EFC) will be reporting earnings this Wednesday after the bell. Here’s what investors should know.
Ellington Financial beat analysts’ revenue expectations by 11.5% last quarter, reporting revenues of $92.54 million, up 1.5% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ tangible book value per share estimates.
Is Ellington Financial a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Ellington Financial’s revenue to grow 17.8% year on year to $78.87 million, slowing from the 24.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.44 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Ellington Financial has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Ellington Financial’s peers in the thrifts & mortgage finance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. PennyMac Financial Services delivered year-on-year revenue growth of 10.6%, beating analysts’ expectations by 9.9%, and PennyMac Mortgage Investment Trust reported revenues up 22.7%, topping estimates by 2.1%. PennyMac Financial Services traded up 7.2% following the results while PennyMac Mortgage Investment Trust was also up 8.4%.
Read our full analysis of PennyMac Financial Services’s results here and PennyMac Mortgage Investment Trust’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the thrifts & mortgage finance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. Ellington Financial is up 1.3% during the same time and is heading into earnings with an average analyst price target of $14.56 (compared to the current share price of $13.45).
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