NYSE$RWT
Redwood Trust Inc · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
Reported financial results for the quarter ended September 30, 2020.
Redwood Trust reported a GAAP net income of $142 million, or $1.02 per diluted common share, and an economic return on book value of 17%. The company's unrestricted cash balance was $451 million, and the total recourse leverage ratio was 1.4x.
- GAAP net income was $142 million, or $1.02 per diluted common share
- GAAP book value per common share was $9.41 at September 30, 2020
- Economic return on book value of 17%
- Unrestricted cash balance of $451 million at September 30, 2020
Headline financials
Revenue & EPS history
Redwood Trust · Revenue · Quarterly
$189M
Forward guidance
Redwood is optimistic that they will end the year on a high note and believe they are well positioned to take market share in the coming quarters.
Tailwinds
- Record-breaking results for both Select residential loan locks
- Record-breaking results for business purpose lending earnings
- The secular trends supporting our housing thesis are intact and accelerating with a nationwide push toward single-family housing
- Strong demand for loans
- New technological initiatives
Headwinds
- Expected volatility through the remainder of 2020
- Potential fallout from pipeline that typically occurs through the lending process
- Numerous risks and uncertainties
- Redwood's actual results may differ from Redwood's beliefs, expectations, estimates, and projections
- Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected may be described from time to time in reports we file with the Securities and Exchange Commission
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
+0.5%
Avg return
Earnings day
+0.1%
Avg return
5 days after
+1.2%
Avg return
30 days after
49%
33 / 68 earnings
Positive
+20.6%
Q4 2025
Best reaction
-9.0%
Q2 2011
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -0.9% | -0.7% | -3.6% | |
| Q4 2025 | +20.6% | +17.1% | +5.2% | |
| Q3 2025 | -2.6% | -4.4% | +0.4% | |
| Q1 2025 | -6.1% | -5.2% | -12.2% | |
| Q4 2024 | -1.2% | -1.1% | -1.1% | |
| Q3 2024 | -3.8% | -5.0% | -5.9% | |
| Q2 2024 | -3.0% | -4.1% | +4.1% | |
| Q1 2024 | +8.6% | +11.4% | +9.7% | |
| Q4 2023 | -8.2% | -7.9% | -4.9% | |
| Q3 2023 | -7.0% | +2.7% | +5.5% | |
| Q2 2023 | +7.1% | +8.3% | +11.8% | |
| Q1 2023 | -1.7% | -9.7% | -7.8% | |
| Q4 2022 | -5.1% | -4.0% | -17.0% | |
| Q3 2022 | +6.5% | +5.0% | +13.3% | |
| Q2 2022 | +1.5% | -2.9% | -4.6% | |
| Q1 2022 | +10.5% | +14.1% | +16.3% | |
| Q4 2021 | -7.3% | -11.6% | -10.7% | |
| Q3 2021 | +2.6% | +2.7% | -1.0% | |
| Q2 2021 | +3.1% | +0.6% | +5.7% | |
| Q1 2021 | +1.3% | +5.1% | +4.0% | |
| Q4 2020 | +2.0% | +2.0% | +9.6% | |
| Q3 2020 | +3.0% | +5.9% | +11.2% | |
| Q2 2020 | +2.1% | -1.6% | +3.0% | |
| Q1 2020 | +3.4% | -8.1% | +74.4% | |
| Q4 2019 | +1.9% | +4.1% | -62.9% | |
| Q3 2019 | -2.2% | -2.2% | -3.1% | |
| Q2 2019 | -1.0% | -1.5% | -1.9% | |
| Q1 2019 | -0.5% | -1.3% | -2.2% | |
| Q4 2018 | -1.1% | -2.1% | -2.0% | |
| Q3 2018 | +1.9% | +0.8% | +0.5% | |
| Q2 2018 | -2.2% | -1.6% | +4.8% | |
| Q1 2018 | +3.9% | +3.2% | +4.3% | |
| Q4 2017 | +2.7% | +0.4% | +0.5% | |
| Q3 2017 | -3.7% | -4.8% | -4.5% | |
| Q2 2017 | -1.8% | -1.3% | -3.6% | |
| Q1 2017 | +1.6% | -0.9% | +2.4% | |
| Q4 2016 | -3.2% | -3.5% | -4.0% | |
| Q3 2016 | +1.1% | +6.2% | +12.3% | |
| Q2 2016 | +4.7% | +1.5% | +0.5% | |
| Q1 2016 | +3.1% | — | — | |
| Q4 2015 | +10.8% | — | — | |
| Q3 2015 | -3.2% | — | — | |
| Q2 2015 | -5.0% | — | — | |
| Q1 2015 | -1.5% | — | — | |
| Q4 2014 | -1.9% | — | — | |
| Q3 2014 | +3.3% | — | — | |
| Q2 2014 | -0.4% | — | — | |
| Q1 2014 | -8.2% | — | — | |
| Q4 2013 | +2.1% | — | — | |
| Q3 2013 | +1.8% | — | — | |
| Q2 2013 | +10.3% | — | — | |
| Q1 2013 | -2.7% | — | — | |
| Q4 2011 | +1.7% | — | — | |
| Q4 2012 | -2.1% | — | — | |
| Q3 2012 | +2.5% | — | — | |
| Q2 2012 | -0.8% | — | — | |
| Q1 2012 | +3.3% | — | — | |
| Q3 2011 | -3.6% | — | — | |
| Q2 2011 | -9.0% | — | — | |
| Q1 2010 | -1.0% | — | — | |
| Q1 2011 | -0.7% | — | — | |
| Q4 2009 | -1.6% | — | — | |
| Q4 2010 | -1.6% | — | — | |
| Q4 2008 | -1.6% | — | — | |
| Q3 2009 | +2.3% | — | — | |
| Q3 2010 | +2.3% | — | — | |
| Q2 2010 | +2.4% | — | — | |
| Q2 2009 | +2.4% | — | — |
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