Earnings Preview For Redwood Trust

Redwood Trust RWT unveils its next round of earnings this Wednesday, July 28. Get prepared with Benzinga's ultimate preview for Redwood Trust's Q2 earnings.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts expect Redwood Trust earnings of $0.4 per share. Revenue will likely be around $26.86 million, according to the consensus estimate. In the same quarter last year, Redwood Trust reported earnings per share of $1.0 on revenue of $27.00 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Wednesday, earnings would be down 60.0%. Revenue would have fallen 0.52% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Shares of Redwood Trust were trading at $11.94 as of July 26. Over the last 52-week period, shares are up 67.48%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Redwood Trust is scheduled to hold the call at 17:00:00 ET and can be accessed here.