Overview

* Ellington Financial ( EFC ) Q2 adjusted EPS beats analyst expectations, per LSEG data

* Net income for Q2 was $42.9 mln, or $0.45 per share

* Book value per share increased to $13.49

Outlook

* Ellington Financial ( EFC ) expects strong earnings from ongoing portfolio expansion

* Company anticipates faster pace of securitizations in current quarter

* Company plans to increase unsecured borrowings to strengthen liability structure

Result Drivers

* INVESTMENT PORTFOLIO - Net income driven by credit strategy, offset by losses from Agency strategy

* LONGBRIDGE CONTRIBUTIONS - Positive impact from reverse mortgage loan securitizations and originations

* NET INTEREST MARGIN - Improvement due to lower cost of funds

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $0.47 $0.4 (7

Adjusted Analysts

EPS )

Q2 EPS $0.45

Q2 Beat $45 mln $37.90

Adjusted mln (6

Net Analysts

Income )

Q2 Net $42.90

Income mln

Q2 Net 3.1%

Interest

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "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 Ellington Financial Inc ( EFC ) is $14.50, about 12.3% above its August 6 closing price of $12.72

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)