NYSE$GPMT

Granite Point Mortgage Trust Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported financial results for the quarter ended September 30, 2020 and provided a post quarter-end update.

Granite Point Mortgage Trust Inc. reported a GAAP net loss of $(24.7) million, or $(0.45) per basic share, inclusive of $(43.7) million of one-time restructuring charges. Core Earnings were $15.0 million, or $0.27 per basic share, excluding the one-time restructuring charges. The company declared a dividend of $0.20 per common share and ended the quarter with over $353 million in cash on hand.

  • GAAP net loss of $(24.7) million, or $(0.45) per basic share, inclusive of $(43.7) million of one-time restructuring charges.
  • Core Earnings of $15.0 million, or $0.27 per basic share, excluding the one-time restructuring charges.
  • Book value of $16.93 per common share, inclusive of $(1.47) per common share related to the allowance for credit losses; declared a dividend of $0.20 per common share.
  • Ended Q3 with over $353 million in cash on hand.

Headline financials

Total Revenue

$33.8M

Previous: $27.1M+24.9%
EPS (adj)

$0.27

Previous: $0.34-20.6%
Portfolio Weighted Average Stabilized LTV at Origination

63.6%

No prior period
Free Cash Flow

-$24.7M

Previous: $17.4M-241.8%
Net Income

-$24.7M

Previous: $17.4M-241.8%
Operating Income

-$34.4M

Previous: -$1.06M-3158.8%
Gross Profit

$30.5M

Previous: $27.1M+12.5%
Cash & Equivalents

$354M

Previous: $137M+157.5%
Total Assets

$4.4B

Previous: $4.31B+2.2%
Stock-Based Comp

$1.32M

Previous: $1.18M+12.0%

Revenue & EPS history

Granite Point · Revenue · Quarterly

$33.8M

Q3 2020+24.9%vs Q3 2019
Beat estimate in 2 of 15 quarters(13%)
ActualEstimate

Forward guidance

The company is strategically focused on preserving value for stockholders and positioning the Company for the current environment and profitable growth opportunities ahead. The process to internalize the Company’s management function has been progressing and is anticipated to close by year-end.

Tailwinds

  • Reinstated common stock dividend, which was more than covered by Core Earnings.
  • Secured $300 million in additional, flexible capital further improving liquidity.
  • Cash balance of over $325 million as of November 6th.
  • Defensively positioned portfolio of 99% senior first mortgage loans generated strong results.
  • Internalization of the Company’s management function is anticipated to close by year-end.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.0%

Avg return

Earnings day

-0.9%

Avg return

5 days after

+0.3%

Avg return

30 days after

46%

16 / 35 earnings

Positive

+24.2%

Q3 2020

Best reaction

-15.1%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.3%-0.7%+6.3%
Q4 2025-11.5%-23.8%-30.8%
Q3 2025+4.6%+2.6%+3.8%
Q1 2025+15.3%+19.5%+37.4%
Q4 2024-9.1%-10.7%-11.3%
Q3 2024+2.3%+12.6%+9.6%
Q2 2024-8.5%-7.1%-6.4%
Q1 2024-13.0%-17.3%-29.1%
Q4 2023-4.3%-7.3%-5.7%
Q3 2023-1.1%-0.2%+18.9%
Q2 2023-1.1%-3.6%-5.3%
Q1 2023+3.2%+4.9%+27.3%
Q4 2022+0.0%-0.7%-18.6%
Q3 2022-15.1%-9.6%-9.7%
Q2 2022+1.1%-1.7%-13.9%
Q1 2022+1.7%+2.8%+11.0%
Q4 2021-1.2%-2.9%+0.6%
Q3 2021+0.4%-1.5%-10.5%
Q2 2021-8.2%-5.0%-4.0%
Q1 2021+1.7%-3.6%+14.3%
Q4 2020+0.5%+3.1%+6.4%
Q3 2020+24.2%+20.4%+44.6%
Q2 2020+5.2%+3.3%-13.2%
Q1 2020+10.4%+2.4%+66.9%
Q4 2019+3.4%-2.7%-78.1%
Q3 2019-1.7%-2.7%-1.9%
Q2 2019-1.4%-1.1%-3.0%
Q1 2019-1.0%-0.6%-2.3%
Q4 2018-0.4%-2.5%-2.4%
Q3 2018+1.7%+1.1%+0.7%
Q2 2018-0.9%-2.7%+1.0%
Q1 2018+2.0%+3.8%+8.9%
Q4 2017-3.2%-1.1%+2.2%
Q3 2017-1.5%-0.3%-1.1%
Q2 2017-0.7%-0.1%-0.6%
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016

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