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Starwood Property Trust (STWD) Up 0.9% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Starwood Property Trust (STWD - Free Report) . Shares have added about 0.9% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Starwood Property Trust due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Starwood Property Q3 Earnings Miss Estimates, Expenses Decline Y/Y

Starwood Property reported third-quarter 2025 distributable earnings of 40 cents per share, which missed the Zacks Consensus Estimate of 45 cents. Also, the reported figure compares unfavorably with 48 cents per share in the year-ago quarter.

Results were primarily affected by a decrease in book value per share. Nevertheless, a year-over-year rise in revenues and declining expenses supported the results to some extent.

The third-quarter 2025 net income (GAAP basis) was $72.6 million, which declined 4.6% year over year.

Inside Starwood Property’s Headlines

Total revenues were $488.9 million, up 1.9% year over year.

Total costs and expenses were $489.4 million, down 2.6% from the prior-year quarter. The decline was primarily due to a fall in interest expense, provision for credit loss and other expenses.

Starwood Property’s BVPS (GAAP basis) was $18.54 as of Sept. 30, 2025, down 4.3% from $19.39 in the prior-year quarter.

The company recorded fundings of $4.7 billion, which increased from $2 billion in the prior-year quarter.

Starwood Property’s Balance Sheet Position

As of Sept. 30, 2025, cash and cash equivalents were $301.1 million, down 15.8% from the prior quarter.

Loans held for sale totaled $2.6 billion compared with $2.5 billion in the prior quarter.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -24% due to these changes.

VGM Scores

At this time, Starwood Property Trust has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Starwood Property Trust has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.


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