CreXus Investment Earnings: Profits Climb By Double Figures Again

CreXus Investment Corporation (NYSE:CXS) reported its results for the first 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.

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CreXus Investment Earnings Cheat Sheet for the First Quarter

Results: Net income for CreXus Investment Corporation rose to $16.1 million (21 cents per share) vs. $4.6 million (23 cents per share) in the same quarter a year earlier. This is a more than threefold rise from the year-earlier quarter.

Actual vs. Wall St. Expectations: CreXus Investment Corporation fell short of the mean analyst estimate of 25 cents per share.

Quoting Management: Kevin Riordan, Chief Executive Officer and President of CreXus, commented on the quarter’s results. “The commercial real estate finance market continues to evolve, and CreXus remains well-positioned to capitalize. We have seen a rising level of transaction volumes and a competitive lending landscape, particularly as the conduit business picks up and life companies remain committed to the market. In our portfolio, we made over $115 million in new debt and equity investments during the quarter and are in the late stages of consummating further new investments. We look forward to continuing to deliver strong risk-adjusted returns to our shareholders.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 838.5% and in the third quarter of the last fiscal year, the figure rose 1142.2%.

The company has now fallen short of estimates in the last two quarters. In the fourth quarter of the last fiscal year, it missed expectations by 12 cents with net income of 19 cents versus a mean estimate of net income of 31 cents per share.

Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next-quarter performance. The average estimate for the second quarter is now 26 cents per share, down from 31 cents. For the fiscal year, the average estimate has moved down from $1.28 a share to $1.03 over the last thirty days.

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

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