Commercial real estate lender Starwood Property Trust (NYSE: STWD) will be reporting earnings this Thursday before the bell. Here’s what investors should know.
Starwood Property Trust beat analysts’ revenue expectations by 26.4% last quarter, reporting revenues of $170.3 million, down 16.9% year on year. It was a strong quarter for the company, with EPS in line with analysts’ estimates.
Is Starwood Property Trust a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Starwood Property Trust’s revenue to grow 11.5% year on year to $208 million, a reversal from the 2.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Starwood Property Trust has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Starwood Property Trust’s peers in the thrifts & mortgage finance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Rocket Companies delivered year-on-year revenue growth of 10.8%, beating analysts’ expectations by 5.8%, and PennyMac Financial Services reported a revenue decline of 7.1%, falling short of estimates by 19.8%. Rocket Companies traded up 11.9% following the results while PennyMac Financial Services was down 7.5%.
Read our full analysis of Rocket Companies’s results here and PennyMac Financial Services’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the thrifts & mortgage finance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.4% on average over the last month. Starwood Property Trust is down 5.7% during the same time and is heading into earnings with an average analyst price target of $21.86 (compared to the current share price of $19.42).
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