NYSE$ORC

Orchid Island Ca · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Orchid Island Capital reported a net loss due to net realized and unrealized losses on RMBS and derivative instruments, while strategically repositioning its portfolio amidst a volatile market environment.

Orchid Island Capital reported a net loss of $148.7 million for the first quarter of 2022, driven by net realized and unrealized losses on RMBS and derivative instruments. The company strategically reduced its portfolio size and repositioned its hedge positions to navigate the challenging market conditions.

  • Net loss of $148.7 million, or $0.84 per common share.
  • Net interest income of $39.2 million, or $0.22 per common share.
  • Book value per common share of $3.34 at March 31, 2022.
  • Leverage ratio decreased from 8.1 to one to 7.5 to one.

Headline financials

Total Revenue

$39.2M

Previous: $24.9M+57.3%
EPS (adj)

-$4.20

Previous: -$1.70-147.1%
Constant prepayment rate

10.7%

Previous: 12.0%-10.8%
Leverage ratio

7.8

Previous: 9.1-14.3%
Avg. yield on RMBS

3.0%

Previous: 2.7%+13.5%
Avg. cost of funds

0.2%

Previous: 0.2%+0.0%
Interest rate spread

2.8%

Previous: 2.5%+14.6%
Net Income

-$149M

Previous: -$29.4M-406.4%
Operating Income

-$144M

Previous: -$3.49M-4023.4%
Cash & Equivalents

$427M

Previous: $329M+30.1%
Total Assets

$5.19B

Previous: $4.93B+5.2%
Stock-Based Comp

$162K

No prior period

Revenue & EPS history

Orchid Island · Revenue · Quarterly

$39.2M

Q1 2022+57.3%vs Q1 2021
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Forward guidance

The company aims to preserve liquidity and minimize the impact of market volatility on its portfolio to capitalize on more favorable market conditions in the future.

Tailwinds

  • Repositioned hedge positions to minimize impact from headwinds
  • Reduced portfolio size through asset sales and retaining cash from paydowns
  • Leverage ratio declined from 8.1 to one to 7.5 to one
  • Increased allocation to structured securities, interest only portfolio
  • Maintained ample liquidity, with cash balances equal to approximately 50% of shareholders equity

Headwinds

  • Rapid removal of accommodation by the Federal Reserve.
  • Inflation accelerating to levels not seen since the early 1980s.
  • War in Ukraine causing substantial inflationary pressure.
  • COVID-19 induced lock-downs across China exacerbating supply chain issues.
  • Reduced dividend in response to the compression of the gap between funding costs and asset yields.

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 Q1 2022

Historical avgQ1 2022

-1.0%

Avg return

Earnings day

-2.1%

Avg return

5 days after

-3.7%

Avg return

30 days after

44%

25 / 57 earnings

Positive

+7.5%

Q4 2023

Best reaction

-12.4%

Q4 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.2%+2.8%-1.2%
Q4 2025-5.7%-7.4%-10.0%
Q3 2025+2.7%-0.5%-3.2%
Q2 2025+1.2%-2.1%-2.3%
Q1 2025+5.1%+3.2%-0.1%
Q3 2024+1.4%+0.9%-1.4%
Q2 2024+1.3%+3.1%+4.5%
Q1 2024+1.0%-3.5%-0.7%
Q4 2023+7.5%+3.4%+8.5%
Q3 2023-1.3%+2.6%+20.8%
Q2 2023-4.0%-6.1%-14.5%
Q1 2023-1.8%-12.8%-7.5%
Q4 2022+1.7%-0.6%-8.9%
Q3 2022-0.1%+0.2%+8.0%
Q2 2022-1.9%-1.9%-19.9%
Q1 2022-4.1%+2.4%+5.2%
Q4 2021-4.8%-11.2%-5.9%
Q3 2021-1.2%-1.2%-4.4%
Q2 2021-3.1%-4.1%+0.2%
Q1 2021-1.4%-1.8%-2.0%
Q4 2020-2.1%-1.0%+2.4%
Q3 2020+1.2%+3.3%+6.8%
Q2 2020+1.2%-2.2%+1.4%
Q1 2020-5.1%-6.8%+2.0%
Q4 2019+3.2%-2.2%-59.4%
Q3 2019-4.1%-3.8%-2.9%
Q2 2019+0.6%+0.6%-13.0%
Q1 2019-1.0%-4.6%-4.9%
Q4 2018-0.6%-1.1%-3.8%
Q3 2018-3.8%-6.9%-2.2%
Q2 2018-2.1%-1.9%-4.0%
Q1 2018-2.9%-6.6%-1.9%
Q4 2017-2.7%+1.4%-2.7%
Q3 2017+2.7%-0.9%-1.6%
Q2 2017+1.7%+0.5%+2.4%
Q1 2017-3.8%-2.6%-8.3%
Q4 2016-12.4%-17.5%-18.8%
Q3 2016+3.3%+3.8%+2.9%
Q2 2016+1.1%+1.3%-3.4%
Q1 2016-10.6%
Q4 2015+3.0%
Q3 2015-10.4%
Q2 2015+3.7%
Q1 2015-0.4%
Q4 2014-6.5%
Q3 2014+0.1%
Q2 2014-0.3%
Q1 2014+1.5%
Q4 2013+1.8%
Q3 2013-0.9%
Q3 2012-0.9%
Q2 2012+0.9%
Q2 2013-1.1%
Q1 2013+0.2%
Q1 2012+0.2%
Q4 2011-3.3%
Q4 2012-3.3%
Q3 2011
Q2 2011
Q1 2011

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro