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Two Harbors (TWO)
NYSE:TWO
Earnings Data
Report Date
May 05, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
0.41Last Year’s EPS
0.05Same Quarter Last Year
Moderate Buy
Based on 7 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Jan 29, 2025
|% Change Since: 15.12%
|Next Earnings Date:May 05, 2025
Earnings Call Sentiment|Neutral
The earnings call presented a balanced view with both positive developments in strategic initiatives like the MSR portfolio integration and direct-to-consumer platform, as well as negative financial performance indicators such as flat quarterly returns and comprehensive losses. While the company is optimistic about its strategy and future returns, the current financial results reflect significant challenges.Company Guidance
During the Two Fourth Quarter 2024 Earnings Call, the company provided guidance on several key financial metrics. The book value per common share was reported at $14.47 as of December 31, 2024, with a quarterly economic return on book value at 0.0% and an annual economic return of 7.0%. The company highlighted the effect of the Federal Reserve's interest rate cuts, noting a shift in market expectations from 100 basis points to roughly 35 basis points over the quarter, resulting in changes to treasury yields and the yield curve. The 10-year treasury yield rose by 79 basis points to 4.57%, while the 2-year yield increased by 60 basis points to 4.24%, deepening the yield curve by 19 basis points. The company serviced $212 billion UPB of MSR across 861,000 loans, with $58,000 or $11.2 billion UPB serviced for third-party clients. Total economic debt to equity was reported at 6.5 times, indicating a slight decrease, with the RMBS funding markets remaining stable by the quarter's end and spreads for repurchase agreements around SOFR plus 15 to 20 basis points. The direct-to-consumer origination platform, launched in 2024, showed promising proof-of-concept results with $42 million UPB of first mortgages funded in the quarter and an additional $21 million UPB in the pipeline. The company's strategy remains focused on MSR-centered returns, projecting a static return on common equity in the range of 10.8% to 14.4%.MSR Portfolio Success
The integration of RoundPoint into Two has largely gone according to plan, with improved economics due to lower costs and increased revenue streams. The MSR-centric strategy is generating favorable returns independent of short-term fluctuations.
Direct-to-Consumer Origination Platform
Launched a direct-to-consumer origination platform to maintain the current servicing portfolio, acting as a hedge for the MSR portfolio. Funded $42 million UPB of first mortgages in the quarter and $21 million UPB in the pipeline.
Agency RMBS Portfolio
Portfolio at December 31 was $14.8 billion with a leverage exposure increase to a more normal range as spreads became more attractive in the quarter.
Positive Tailwinds for Servicing Portfolio
Flow prepayments are a positive tailwind for the servicing portfolio, with significant progress made on the direct-to-consumer originations platform serving as a hedge.
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TWO 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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TWO Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Jan 29, 2025 | $11.77 | $12.56 | +6.71% |
| Oct 28, 2024 | $12.33 | $11.52 | -6.57% |
| Jul 30, 2024 | $12.83 | $12.54 | -2.26% |
| Apr 29, 2024 | $11.32 | $11.36 | +0.35% |
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 Two Harbors (TWO) report earnings?
Two Harbors (TWO) is schdueled to report earning on May 05, 2025, TBA Not Confirmed.
What is Two Harbors (TWO) earnings time?
Two Harbors (TWO) earnings time is at May 05, 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 TWO EPS forecast?
TWO EPS forecast for the fiscal quarter 2025 (Q1) is 0.41.
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