NYSE$TWO
Two Harbors Investment Corp · Q4 2022 earnings
Q4 2022 earnings · · Investor relations
Briefing
Two Harbors reported positive return on book value due to being positioned in low coupon MSR and higher coupon RMBS.
Two Harbors Investment Corp. reported a positive return on book value in the fourth quarter of 2022, driven by its portfolio positioning in low coupon MSR and higher coupon RMBS. The company's book value was $17.72 per common share, and a dividend of $0.60 per share was declared. Comprehensive Income was $160.2 million, or $1.85 per share, and Earnings Available for Distribution (EAD) were $22.2 million, or $0.26 per share.
- Reported book value of $17.72 per common share, and declared a fourth quarter common stock dividend of $0.60 per share, representing an 11.6% quarterly economic return on book value.
- Generated Comprehensive Income of $160.2 million, or $1.85 per weighted average basic common share.
- Reported Earnings Available for Distribution (EAD) of $22.2 million, or $0.26 per weighted average basic common share.
- Generated Income Excluding Market-Driven Value Changes of $0.73 per weighted average basic common share.
Headline financials
Revenue & EPS history
Two Harbors · Revenue · Quarterly
-$16.3M
Revenue by segment
Two Harbors · $3.07B total across 1 segment · Q1 2023
- MSR Servicing Income$3.07B—100.0%
Forward guidance
The company did not provide specific forward guidance but expressed optimism about the return potential in 2023, expecting volatility to moderate, which could lead to tighter spreads and positive outcomes for mortgage securities.
Tailwinds
- Constructive on forward-looking return potential in 2023
- Expects that volatility will moderate in 2023
- Tighter spreads could be a positive tailwind for mortgage securities
- Portfolio benefitting from being positioned in low coupon MSR
- Portfolio benefitting from being positioned in higher coupon RMBS
Headwinds
- Spread volatility in the fourth quarter
- Challenging investment environments in decades
- Inflation moderated
- Rate expectations leveled off
- Volatility remained stubbornly high
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 Q4 2022
-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
| Quarter | Report date | Reaction (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% | — | — |
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