Two Harbors Investment (NYSE: TWO) reported Q3 EPS of $0.24, $0.15 worse than the analyst estimate of $0.39.

Quarterly Summary

• Grew book value to $14.72 per common share, representing a 6.7% quarterly total return on book value and bringing total return on book value for the first nine months of 2019 to 22.0%.(1)
• Generated Comprehensive Income of $257.6 million, or $0.94 per weighted average basic common share, representing an annualized return on average common equity of 25.7%.
• Reported Core Earnings, including dollar roll income, of $65.0 million, or $0.24 per weighted average basic common share.(2)
• Added $5.8 billion in unpaid principal balance (UPB) of MSR through flow sale arrangements. Post quarter-end, closed on two bulk MSR acquisitions for a total of $11.1 billion UPB.

“We are very proud of our strong economic return during the third quarter,” stated Thomas Siering, Two Harbors’ President and Chief Executive Officer. “Preserving book value has always been our primary goal. This quarter demonstrates how our portfolio can deliver strong total returns even when interest rates are volatile and mortgage spreads widen. This is largely driven by our strategy of pairing Agency RMBS with MSR.”

For earnings history and earnings-related data on Two Harbors Investment (TWO) click here.