Two Harbors Investment Corp. (TWO) Q4 2024 Earnings Call Transcript
Two Harbors Investment Corp. (NYSE:TWO ) Q4 2024 Earnings Conference Call January 30, 2025 9:00 AM ET Company Participants Maggie Karr - Head, Investor Relations Bill Greenberg - President & Chief Executive Officer William Dellal - Interim Chief Financial Officer Nick Letica - Chief Investment Officer Conference Call Participants Mikhail Goberman - Citizens JMP Frank Labetti - KBW Jake Katsikas - BTIG Operator Good morning. My name is Maddie, and I will be your conference facilitator.
Two Harbors Investments (TWO) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates
While the top- and bottom-line numbers for Two Harbors Investments (TWO) give a sense of how the business performed in the quarter ended December 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Housing Gridlock Fuels 10% Yielding Two Harbors Preferreds
Housing market gridlock benefits Two Harbors by extending the duration of its assets, enhancing stability and visibility into future cashflows. TWO's fixed-to-floating preferreds offer high yields (9.6%-10.5%) with potential for capital appreciation, making them attractive high-yield investments. The offsetting sensitivity of MSRs and Agency RMBS to interest rates provides TWO with resilience against rate changes, supporting stable preferred dividends.
Two Harbors Plunges 10.9% in a Month: Should You Buy the Dip?
TWO's lucrative dividend yield and favorable long-term prospects are encouraging. Read on to know whether to buy the stock now or wait for a better entry point.
Down -9.4% in 4 Weeks, Here's Why Two Harbors Investments (TWO) Looks Ripe for a Turnaround
Two Harbors Investments (TWO) has become technically an oversold stock now, which implies exhaustion of the heavy selling pressure on it. This, combined with strong agreement among Wall Street analysts in revising earnings estimates higher, indicates a potential trend reversal for the stock in the near term.
Is Two Harbors Investments Corp (TWO) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Two Harbors: Weak Earnings
Two Harbors Investment Corp. is highly sensitive to interest rate changes, with Q3 earnings weak and dividend coverage increasingly opaque. The company's focus on mortgage servicing rights (MSRs) aims to reduce exposure to rate changes, but earnings indicate underlying issues. Q3 comprehensive income was $19.3 million, with a net loss of $250.2 million, with very little earnings available for distribution, raising concerns about dividend sustainability.
Two Harbors Investment Corp. (TWO) Q3 2024 Earnings Call Transcript
Two Harbors Investment Corp. (NYSE:TWO ) Q3 2024 Earnings Conference Call October 29, 2024 9:00 AM ET Company Participants Maggie Karr - Head, Investor Relations Bill Greenberg - President and CEO Nick Letica - Chief Investment Officer William Dellal - Interim Chief Financial Officer Conference Call Participants Doug Harter - UBS Bose George - KBW Jason Stewart - Janney Rick Shane - JPMorgan Trevor Cranston - Citizens JMP Eric Hagen - BTIG Harsh Hemnani - Green Street Operator Please stand by. Good morning.
Here's What Key Metrics Tell Us About Two Harbors Investments (TWO) Q3 Earnings
While the top- and bottom-line numbers for Two Harbors Investments (TWO) give a sense of how the business performed in the quarter ended September 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Key Factors Influencing Two Harbors Investment's Q3 Earnings
TWO's third-quarter 2024 results are expected to benefit from lower mortgage rates, though the negative NII remains a challenge.
Two Harbors Investment Preferreds: Defining The Opportunity In Declining Interest Rates
Investors are considering transferring reserves from money markets to bonds due to declining interest rates. Two Harbors Investment Corporation's preferred stocks (TWO.PR.A, TWO.PR.B, TWO.PR.C) are analyzed for investment opportunities and risks. TWO.PR.B is currently trading at the steepest discount to par and may outperform in declining interest rate scenarios.
Two Harbors Preferreds Look Much Better Than The Common
Two Harbors preferreds have significantly outperformed the common shares over the past five years. Structural aspects of mREITs like the requirement to pay out 90% of taxable income and the lack of real estate depreciation, favor preferreds over common shares. The conversion to a floating rate for Two Harbors preferreds offers the potential for significant capital appreciation.
