Capstead Mortgage Earnings: Here’s Why Investors are Not Happy Now

Capstead Mortgage Corp. (NYSE:CMO) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0%.

Capstead Mortgage Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 22.86% to $0.27 in the quarter versus EPS of $0.35 in the year-earlier quarter.

Revenue: Decreased 21.7% to $51.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Capstead Mortgage Corp. reported adjusted EPS income of $0.27 per share. By that measure, the company missed the mean analyst estimate of $0.33. It missed the average revenue estimate of $56.68 million.

Quoting Management: Commenting on the preferred capital transactions, operations and current market conditions, Andrew F. Jacobs, President and Chief Executive Officer, said, “We are very pleased to have completed the preferred capital transactions this quarter which eliminated substantially higher-cost preferred capital in favor of a smaller amount of new lower-cost perpetual preferred capital that can be redeemed any time after five years from issuance.”

Key Stats (on next page)…

Revenue decreased 11.85% from $58.65 million in the previous quarter. EPS decreased 27.03% from $0.37 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.34 to a profit $0.33. For the current year, the average estimate has moved down from a profit of $1.3 to a profit of $1.29 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)