CreXus Investment Earnings: Net Income Falls Again, but Tops Estimates

CreXus Investment Corporation (NYSE:CXS) reported its results for the third quarter. CreXus Investment acquires, manages, and finances, directly or through its subsidiaries, commercial mortgage loans, and other commercial real estate debt, commercial mortgage-backed securities, and other commercial real estate-related assets.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

CreXus Investment Corporation Earnings Cheat Sheet

Results: Net income for CreXus Investment Corporation fell to $22.6 million (30 cents per share) vs. $39.9 million (52 cents per share) a year earlier. This is a decline of 43.3% from the year-earlier quarter.

Actual vs. Wall St. Expectations: CreXus Investment Corporation beat the mean analyst estimate of 22 cents per share.

Quoting Management: Kevin Riordan, Chief Executive Officer and President of CreXus, commented on the quarter’s results. “With $125 million of capital committed this quarter, we continue the process of increasing our portfolio yield and maturity while maintaining a consistent risk profile, and building a book of business that is designed to perform for the long-term. The weight of Fed involvement in the fixed income markets is being felt in our markets and credit spreads are tightening, but we believe this will result in an increase in new loan originations and securities issuance. Our pipeline and platform remain active, and we will continue to capitalize on opportunities as they arise.”

Key Stats:

The company has now seen net income fall in each of the last two quarters. In the second quarter, net income fell 35% from the year-earlier quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the second quarter, it missed the mark by 6 cents, and in the first quarter, it came in under estimates by 12 cents.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 24 cents per share to 23 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from 91 cents a share to 83 cents over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Is AT&T’s Stock a Buy as iPhone Sales Soar?

Is LinkedIn Still a Wall Street Darling?

Should Netflix Shareholders Hope for a Buyout?