Ellington Residential Mortgage REIT (EARN) Misses Q2 EPS by 1c

Ellington Residential Mortgage REIT (NYSE: EARN) reported Q2 EPS of $0.47, $0.01 worse than the analyst estimate of $0.48. Revenue for the quarter came in at $0 versus the consensus estimate of $7.33 million.

(emphasis Street Insider) "In the second quarter, Ellington Residential had net income of $0.15 per share and Adjusted Core Earnings of $0.47 per share," said Laurence Penn, Chief Executive Officer and President. "Similar to last quarter, market volatility was subdued. The low volatility was supportive of our adjusted net interest margin, which was 1.63% for the quarter, but it also created only limited opportunities for trading gains. Even with the ramp-up period to invest the proceeds of our equity offering, the portfolio performed well over the course of the quarter, with net income, excluding management fees and operating expenses, of $0.28 per share, and strong Adjusted Core Earnings that more than covered our nearly 11% dividend yield. Pay-ups on specified pools edged higher over the quarter, but strong TBA dollar rolls and the relative outperformance of TBAs compared to specified pools dampened our net income, as net short positions in TBAs continued to represent a significant portion of our interest rate hedging portfolio. Our small portfolio of non-Agency RMBS performed very well this quarter, nicely augmenting our results.

For earnings history and earnings-related data on Ellington Residential Mortgage REIT (EARN) click here.

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