NYSE$TWO

Two Harbors Investment Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported stable results amidst heightened volatility.

Two Harbors Investment Corp. reported financial results for the quarter ended June 30, 2024, showcasing the benefits of its unique portfolio construction of MSR paired with Agency RMBS. The company strategically allocated more than 60% of its capital to MSR, which carries low duration and low spread volatility. They also launched a direct-to-consumer recapture originations platform.

  • Reported book value of $15.19 per common share, and declared a second quarter common stock dividend of $0.45 per share, representing a flat quarterly economic return on book value.
  • Generated Comprehensive Income of $0.5 million, or $0.00 per weighted average basic common share.
  • Repurchased $10.0 million principal amount of convertible senior notes due 2026.
  • Launched direct-to-consumer recapture originations platform.

Headline financials

Total Revenue

-$38.3M

Previous: -$41.8M+8.5%
EPS

$0.43

Previous: -$0.04+1175.0%
Book Value/Share

$14.66

Previous: $16.39-10.6%
Free Cash Flow

$56.3M

Previous: $197M-71.5%
Net Income

$56.3M

Previous: $197M-71.5%
Operating Income

-$177M

Previous: -$181M+1.8%
Gross Profit

-$38.3M

Previous: -$41.8M+8.5%
Stock-Based Comp

$1.64M

Previous: $1.74M-5.3%

Revenue & EPS history

Two Harbors · Revenue · Quarterly

-$38.3M

Q2 2024-8.5%vs Q2 2023
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

Intends to begin offering a suite of ancillary and home equity products to our customers, including second lien loans, in the third quarter. Nominal spreads for Agency RMBS are still wide on a historical basis, and possess tightening potential in a lower volatility environment, which we expect will be associated with the beginning of a Fed cutting cycle.

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 Q2 2024

Historical avgQ2 2024

-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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