Ellington Financial's Q4 adjusted profit beats estimates on high origination volumes

Overview

• Financial services firm Q4 adjusted EPS beat analyst expectations

• Q4 adjusted net income also came above estimates

• Company's balance sheet strengthened by securitization and financing activities

Outlook

• Ellington Financial aims to increase market share in loan originations in 2026

• Company is optimizing capital structure by retiring high-cost preferred equity

• Ellington Financial expects to increase share of unsecured, long-term financings

Result Drivers

• LONGBRIDGE SEGMENT - Strong contributions from Longbridge segment due to high origination volumes and gains from proprietary reverse mortgage loan securitizations

• CREDIT PORTFOLIO - Increased net interest income and gains from non-QM retained tranches boosted credit portfolio performance

• SECURITIZATION AND FINANCING - Securitization activities and unsecured notes offering strengthened balance sheet and supported portfolio expansion

Company press release: ID:nBw6sK2mda

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "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 Ellington Financial Inc is $14.50, about 15.8% above its February 25 closing price of $12.52

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

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