Ellington Financial's Q4 adjusted profit beats estimates on high origination volumes

Reuters02-26
Ellington Financial's Q4 adjusted profit beats estimates on high origination volumes

Overview

  • Financial services firm Q4 adjusted EPS beat analyst expectations

  • Q4 adjusted net income also came above estimates

  • Company's balance sheet strengthened by securitization and financing activities

Outlook

  • Ellington Financial aims to increase market share in loan originations in 2026

  • Company is optimizing capital structure by retiring high-cost preferred equity

  • Ellington Financial expects to increase share of unsecured, long-term financings

Result Drivers

  • LONGBRIDGE SEGMENT - Strong contributions from Longbridge segment due to high origination volumes and gains from proprietary reverse mortgage loan securitizations

  • CREDIT PORTFOLIO - Increased net interest income and gains from non-QM retained tranches boosted credit portfolio performance

  • SECURITIZATION AND FINANCING - Securitization activities and unsecured notes offering strengthened balance sheet and supported portfolio expansion

Company press release: ID:nBw6sK2mda

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Adjusted EPS

Beat

$0.47

$0.45 (7 Analysts)

Q4 EPS

$0.14

Q4 Adjusted Net Income

Beat

$51.40 mln

$41.09 mln (6 Analysts)

Q4 Net Income

$14.70 mln

Q4 Net Interest Margin

3.37%

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the specialized reits peer group is "buy"

  • Wall Street's median 12-month price target for Ellington Financial Inc is $14.50, about 15.8% above its February 25 closing price of $12.52

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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