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Ellington Residential Mortgage (EARN)
NYSE:EARN
RESEARCH TOOLSreports
Earnings Data
Report Date
May 07, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
0.26Last Year’s EPS
0.27Same Quarter Last Year
Moderate Buy
Based on 0 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Mar 12, 2025
|% Change Since: -21.39%
|Next Earnings Date:May 07, 2025
Earnings Call Sentiment|Neutral
The earnings call reflected a balanced perspective with significant achievements such as the successful conversion to a closed-end fund and growth in the CLO portfolio. However, these were offset by challenges including a net loss for the quarter and potential headwinds due to market volatility.Company Guidance
In the recent conference call, Ellington Credit Company provided guidance on its strategic transition and financial performance metrics. The company is set to convert to a closed-end fund on April 1, 2025, following shareholder approval on January 17, 2024. During the fourth quarter of 2024, Ellington expanded its CLO portfolio by 18% to $171 million, focusing on CLO equity tranches due to tightening debt spreads. This portfolio stands at approximately $235 million as of the call date. The net mortgage assets-to-equity ratio decreased to 2.6:1 at year-end from 3:1 on September 30, reflecting a strategic shift in hedging positions. For Q4, Ellington reported a net loss of $0.07 per share, with adjusted distributable earnings of $0.27 per share and a net interest margin of 5.07%. The company's debt-to-equity ratio was below 3:1, with liquidity comprising cash and unencumbered assets totaling $111 million. Post-conversion, Ellington anticipates a lower debt-to-equity ratio, aiming to enhance risk-adjusted returns and tax efficiencies. The transition is expected to unlock significant capital, estimated at 28% of the portfolio, for redeployment into CLOs.Successful Conversion to Closed-End Fund
Ellington Credit Company successfully transitioned to a closed-end fund, with an official conversion date set for April 1, 2025. This transition is expected to improve risk-adjusted returns, enhance capital market access, and provide greater tax efficiencies.
CLO Portfolio Growth
The CLO portfolio grew by 18% in the fourth quarter to $171 million, with a focus on CLO equity tranches due to tightening debt spreads. The CLO portfolio further expanded to $235 million by the transcript date.
Strong Performance in CLO Mezzanine Debt
CLO mezzanine debt continued to perform well, contributing to net interest income and adjusted distributable earnings with tighter credit spreads and opportunistic sales.
Dividend Coverage
Adjusted distributable earnings of $0.27 per share covered the dividends of $0.24 per share for the quarter.
High Liquidity Levels
Liquidity remained high with cash plus unencumbered assets totaling $111 million, representing more than 50% of total equity.
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EARN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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EARN Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Mar 12, 2025 | $6.03 | $5.82 | -3.48% |
| Nov 13, 2024 | $6.10 | $5.98 | -1.97% |
| Aug 12, 2024 | $6.10 | $6.34 | +3.93% |
| May 14, 2024 | $6.29 | $6.31 | +0.32% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Ellington Residential Mortgage (EARN) report earnings?
Ellington Residential Mortgage (EARN) is schdueled to report earning on May 07, 2025, TBA Not Confirmed.
What is Ellington Residential Mortgage (EARN) earnings time?
Ellington Residential Mortgage (EARN) earnings time is at May 07, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is EARN EPS forecast?
EARN EPS forecast for the fiscal quarter 2025 (Q1) is 0.26.
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