Orchid Island Capital Q2 net loss widens amid market volatility

Overview

• Orchid Island Capital reports Q2 net loss of $33.6 mln, compared with a loss of $5 mln year ago

• Book value per share declines to $7.21, down from $8.09 at year-end

• Net realized and unrealized losses on RMBS and derivatives total $51.7 mln

Outlook

• Company says it is well positioned to capture the attractive returns available in the market currently

• Company says it will benefit if and when the Agency RMBS market recovers

Result Drivers

• MARKET VOLATILITY - Reciprocal tariffs and legislative changes led to turbulent financial markets, impacting Orchid's Q2 results

• RMBS LOSSES - Net realized and unrealized losses on RMBS and derivatives totaled $51.7 mln, contributing to net loss

• BALANCE SHEET REDUCTION - Orchid reduced its balance sheet to maintain prudent leverage levels, incurring modest permanent losses

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for Orchid Island Capital Inc is $8.00, about 8.3% above its July 23 closing price of $7.34

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nGNX3Hmdfd