NYSE$RWT

Redwood Trust Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Redwood Trust reported financial results, including a GAAP net loss related to common stockholders of $(33) million, or $(0.29) per diluted common share, and non-GAAP Earnings Available for Distribution (EAD) of $11 million, or $0.09 per basic common share.

Redwood Trust reported a GAAP net loss of $(33) million, or $(0.29) per diluted common share, and non-GAAP Earnings Available for Distribution (EAD) of $11 million, or $0.09 per basic common share for Q3 2023. The company saw growth in its Residential Mortgage Banking business and successfully securitized and sold its production across both operating businesses.

  • GAAP book value per common share was $8.77 at September 30, 2023, a 5.3% decrease from $9.26 per share at June 30, 2023.
  • Locked $1.6 billion of jumbo loans, up from $567 million in the second quarter 2023, and purchased $815 million of jumbo loans, up from $184 million in the second quarter 2023.
  • Funded $411 million of business purpose lending (BPL) loans in the third quarter 2023, up from $406 million in the second quarter 2023.
  • Unrestricted cash and cash equivalents of $204 million at September 30, 2023.

Headline financials

Total Revenue

$10.8M

Previous: -$2.2M+589.0%
EPS (adj)

$0.09

Previous: $0.16-43.8%
Redwood Investments Recourse Leverage

2.3

Previous: 2.6-11.5%
Free Cash Flow

-$30.8M

Previous: -$50.4M+38.9%
Net Income

-$30.8M

Previous: -$50.4M+38.9%
Operating Income

-$26.8M

Previous: -$45M+40.5%
Gross Profit

$6.12M

Previous: -$6.46M+194.8%
Cash & Equivalents

$204M

Previous: $297M-31.5%
Total Assets

$13B

Previous: $13.1B-0.9%
Stock-Based Comp

$3.41M

Previous: $5.07M-32.7%

Revenue & EPS history

Redwood Trust · Revenue · Quarterly

$10.8M

Q3 2023-589%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Redwood Trust expects to formalize other partnerships complementary to its traditional distribution channels, driven by significant interest in its asset creation and sourcing abilities.

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 2023

Historical avgQ3 2023

+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

Earnings price reactions
QuarterReport dateReaction (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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