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Compared to Estimates, Redwood Trust (RWT) Q2 Earnings: A Look at Key Metrics

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For the quarter ended June 2025, Redwood Trust (RWT - Free Report) reported revenue of $13.8 million, down 45.5% over the same period last year. EPS came in at $0.18, compared to $0.13 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $32.59 million, representing a surprise of -57.65%. The company delivered an EPS surprise of -5.26%, with the consensus EPS estimate being $0.19.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Redwood Trust performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
  • Net interest income: $13.8 million versus $32.62 million estimated by three analysts on average.
  • Non-interest income (loss)- Sequoia mortgage banking activities, net: $24.4 million versus $20.89 million estimated by three analysts on average.
  • Total non-interest income (loss), net: $36.7 million compared to the $51.98 million average estimate based on three analysts.
  • Non-interest income (loss)- Mortgage banking activities, net: $40.9 million versus the three-analyst average estimate of $33.19 million.
  • Non-interest income (loss)- HEI income, net: $-12.9 million versus $9 million estimated by three analysts on average.
  • Non-interest income (loss)- CoreVest mortgage banking activities, net: $16.5 million versus the three-analyst average estimate of $12.3 million.

View all Key Company Metrics for Redwood Trust here>>>

Shares of Redwood Trust have returned +0.5% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.

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