NYSE$TWO

Two Harbors Investment Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported financial results for the quarter ended March 31, 2023.

Two Harbors Investment Corp. reported a comprehensive loss of $63.2 million, or $(0.69) per weighted average basic common share. Earnings Available for Distribution (EAD) was $8.3 million, or $0.09 per weighted average basic common share. The company's book value was $16.48 per common share, with a first quarter common stock dividend of $0.60 per share.

  • Reported book value of $16.48 per common share, and declared a first quarter common stock dividend of $0.60 per share, representing a (3.6)% quarterly economic return on book value.
  • Incurred a Comprehensive Loss of $63.2 million, or $(0.69) per weighted average basic common share.
  • Reported Earnings Available for Distribution (EAD) of $8.3 million, or $0.09 per weighted average basic common share.
  • Generated Income Excluding Market-Driven Value Changes (IXM) of $0.59 per weighted average basic common share.

Headline financials

Total Revenue

-$25.9M

Previous: $22.5M-214.9%
EPS (adj)

$0.09

Previous: $0.72-87.5%
Dividend/Share

$0.60

No prior period
Dividend Yield

16.3%

No prior period
Economic Return on BV

-3.6%

No prior period
Avg Cost of Financing

4.6%

No prior period
Free Cash Flow

-$177M

Previous: $285M-162.0%
Net Income

-$177M

Previous: $285M-162.0%
Operating Income

-$154M

Previous: $105K-147222.9%
Gross Profit

-$25.9M

Previous: $22.5M-214.9%
Cash & Equivalents

$708M

Previous: $620M+14.2%
Total Assets

$13.9B

Previous: $12.3B+13.6%
Stock-Based Comp

$6.05M

Previous: $4.16M+45.4%

Revenue & EPS history

Two Harbors · Revenue · Quarterly

-$25.9M

Q1 2023-214.9%vs Q1 2022
Beat estimate in 1 of 14 quarters(7%)
ActualEstimate

Revenue by segment

Two Harbors · $3.07B total across 1 segment · Q1 2023

  • MSR Servicing Income
    $3.07B

Forward guidance

Two Harbors Investment Corp. anticipates attractive opportunities from wide RMBS spreads and slow MSR prepayment speeds.

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 2023

Historical avgQ1 2023

-0.3%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.0%

Avg return

30 days after

45%

29 / 64 earnings

Positive

+16.7%

Q3 2023

Best reaction

-11.5%

Q1 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%+10.7%+12.0%
Q4 2025+0.4%-6.8%-19.0%
Q3 2025+0.2%-1.0%+4.0%
Q1 2025+3.5%-1.1%-7.3%
Q4 2024+6.7%+8.4%+20.5%
Q3 2024-7.1%-11.5%-8.8%
Q2 2024-1.5%-3.4%+2.8%
Q1 2024+0.8%+4.5%-0.4%
Q4 2023-5.8%-7.3%-7.7%
Q3 2023+16.7%+32.8%+39.4%
Q2 2023+0.7%-0.2%+0.5%
Q1 2023-10.3%-14.9%-10.7%
Q4 2022-1.9%+1.1%-14.0%
Q3 2022+5.0%+14.9%+10.8%
Q2 2022-2.1%-3.4%-9.5%
Q1 2022+3.0%+3.4%+5.1%
Q4 2021+0.2%-3.0%-2.2%
Q3 2021-1.9%-2.6%-3.4%
Q2 2021-0.3%+0.2%+2.4%
Q1 2021-11.5%-9.0%-4.9%
Q4 2020+3.7%-5.9%+9.3%
Q3 2020-1.3%+4.9%+21.8%
Q2 2020-4.5%+8.2%-1.7%
Q1 2020-1.3%-5.1%+21.4%
Q4 2019+0.8%-1.3%-11.4%
Q3 2019+2.2%+4.1%+5.6%
Q2 2019+2.1%+4.0%+0.5%
Q1 2019-1.0%-1.2%-8.7%
Q4 2018-3.6%-4.6%-5.3%
Q3 2018-3.0%-2.0%-2.2%
Q2 2018+1.5%+2.9%+6.4%
Q1 2018-1.2%-0.3%+1.3%
Q4 2017+1.8%+3.9%+7.6%
Q3 2017+1.8%+0.7%+6.9%
Q2 2017+1.3%+1.9%+2.6%
Q1 2017-0.3%-0.3%+3.8%
Q4 2016+0.2%+1.9%+4.8%
Q3 2016+0.6%+2.5%+3.2%
Q2 2016+2.1%+2.9%+4.5%
Q1 2016+5.5%
Q4 2015+0.0%
Q3 2015-4.9%
Q2 2015-3.2%
Q1 2015+0.2%
Q4 2014-1.1%
Q3 2014+0.5%
Q2 2014+2.3%
Q1 2014-0.5%
Q4 2013+0.8%
Q3 2013+1.7%
Q2 2013-2.4%
Q1 2013+7.0%
Q4 2012-2.2%
Q3 2012-6.4%
Q2 2012-0.4%
Q1 2011-1.2%
Q1 2012+1.4%
Q4 2011-1.5%
Q1 2010-1.5%
Q4 2010-1.5%
Q3 2010-0.4%
Q3 2011-0.4%
Q2 2011-5.3%
Q2 2010-5.3%

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