Redwood Belief (RWT) got here out with quarterly earnings of $0.33 per share, beating the Zacks Consensus Estimate of $0.29 per share. This compares to lack of $0.03 per share a 12 months in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of 13.79%. 1 / 4 in the past, it was anticipated that this specialty finance firm would submit earnings of $0.27 per share when it really produced earnings of $0.40, delivering a shock of 48.15%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates 4 occasions.
Redwood Belief, which belongs to the Zacks REIT and Fairness Belief business, posted revenues of $31 million for the quarter ended June 2021, surpassing the Zacks Consensus Estimate by 31.06%. This compares to year-ago revenues of $27 million. The corporate has topped consensus income estimates two occasions over the past 4 quarters.
The sustainability of the inventory’s rapid worth motion based mostly on the recently-released numbers and future earnings expectations will largely depend upon administration’s commentary on the earnings name.
Redwood Belief shares have added about 34.3% because the starting of the 12 months versus the S&P 500’s acquire of 17.2%.
What’s Subsequent for Redwood Belief?
Whereas Redwood Belief has outperformed the market thus far this 12 months, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There are not any straightforward solutions to this key query, however one dependable measure that may assist buyers handle that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified these days.
Empirical analysis exhibits a robust correlation between near-term inventory actions and tendencies in earnings estimate revisions. Traders can monitor such revisions by themselves or depend on a tried-and-tested ranking device just like the Zacks Rank, which has a formidable monitor report of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for Redwood Belief was favorable. Whereas the magnitude and path of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #2 (Purchase) for the inventory. So, the shares are anticipated to outperform the market within the close to future. You possibly can see the whole listing of right now’s Zacks #1 Rank (Robust Purchase) shares right here.
It will likely be attention-grabbing to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $0.25 on $24.58 million in revenues for the approaching quarter and $1.17 on $99.13 million in revenues for the present fiscal 12 months.
Traders needs to be conscious of the truth that the outlook for the business can have a fabric affect on the efficiency of the inventory as nicely. When it comes to the Zacks Trade Rank, REIT and Fairness Belief is at the moment within the backside 16% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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Redwood Belief, Inc. (RWT): Free Inventory Evaluation Report
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