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Two Harbors Investment Third Quarter 2022 Earnings: EPS Beats Expectations, Revenues Lag

Two Harbors Investment (NYSE:TWO) Third Quarter 2022 Results

Key Financial Results

  • Revenue: US$346.8m (up 156% from 3Q 2021).

  • Net income: US$262.5m (up 401% from 3Q 2021).

  • Profit margin: 76% (up from 39% in 3Q 2021). The increase in margin was driven by higher revenue.

  • EPS: US$3.04 (up from US$0.68 in 3Q 2021).

earnings-and-revenue-growth
earnings-and-revenue-growth

All figures shown in the chart above are for the trailing 12 month (TTM) period

Two Harbors Investment EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 66%. Earnings per share (EPS) exceeded analyst estimates significantly.

Looking ahead, revenue is expected to decline by 60% p.a. on average during the next 2 years, while revenues in the Mortgage REITs industry in the US are expected to grow by 14%.

Performance of the American Mortgage REITs industry.

The company's shares are up 17% from a week ago.

Risk Analysis

It is worth noting though that we have found 3 warning signs for Two Harbors Investment (2 are potentially serious!) that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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