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Ellington Residential Mortgage (EARN)
NYSE:EARN
Earnings Data
Report Date
May 04, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.25Last Year’s EPS
0.26Same Quarter Last Year
Moderate Buy
Based on 1 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Neutral
The call conveyed a mixed but pragmatic tone: management acknowledged significant near-term losses driven by severe CLO equity market stress (NAV decline, GAAP loss, weakened yields), but emphasized effective downside mitigation through active trading, a strategic shift into mezzanine debt, realized gains from redemptions and calls, substantial credit hedges (~$175M, ~90% of NAV), portfolio expansion and liquidity, and tactical plans (potential unsecured debt issuance) to deploy into dislocations. The positives around risk management, realized gains, and positioning partially offset the material mark-to-market losses and ongoing market headwinds.Company Guidance
Limited NAV Losses and Relative Outperformance
Ellington limited fund losses to approximately 9% of NAV in Q4, outperforming the overall peer set in a very challenging CLO equity market.
Strategic Shift into CLO Mezzanine Debt
Following conversion to a CLO closed-end fund, the firm increased allocation to CLO mezzanine debt: ~70% of CLO purchases during the 9-month buildout were mezzanine tranches. The proportion of debt in the CLO portfolio grew to just under 50% by year-end (up from roughly one-third at conversion).
Active Trading and Portfolio Expansion
High trading activity: 218 CLO trades over the 9-month period (47 unique trades in Q4 alone). Portfolio expanded nearly 50% to $370 million by calendar year-end, with $272 million of purchases and $63 million of sales (excluding redemptions) during that buildout.
Realized Gains and Defensive Positioning
Recorded positive realized gains in each CLO subsector for the quarter; several mezzanine positions purchased at discounts were redeemed at par, generating realized gains. The team exercised CLO call options and collapsed certain discounted CLOs to strengthen credit profile and liquidity.
Large Credit Hedge Allocation
Increased credit hedges to roughly $175 million of high-yield CDX bond equivalents by year-end, representing approximately 90% of NAV, reflecting significant downside protection.
Liquidity and Funding Optionality
Cash and cash equivalents totaled $24.3 million at December 31. Management is exploring issuance of long-term unsecured debt to add dry powder and optionality to deploy into dislocations.
Resilient CLO Mezzanine Performance
CLO mezzanine debt held up materially better than equity in Q4: net interest income and trading gains plus deal calls on discount positions offset most mark-to-market write-downs on mezzanine holdings.
Early 2026 Outperformance and Continued Mezzanine Focus
EARN outperformed its peer set in January with an NAV of $5.04. In 2026, >75% of purchases have been mezzanine debt (especially deleveraging BB tranches), reflecting continued defensive and opportunistic positioning.
Favorable Runway for Liability Resets
More than 40% of U.S. CLO portfolio deals are scheduled to exit non-call periods before year-end, creating potential for liability refinancing/resets that could mitigate coupon spread compression if market conditions permit.
EARN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
EARN Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Mar 04, 2026 | $4.80 | $4.91 | +2.29% |
Nov 19, 2025 | $4.80 | $4.83 | +0.58% |
Aug 19, 2025 | $5.06 | $5.18 | +2.51% |
May 20, 2025 | $4.83 | $4.73 | -2.13% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Ellington Residential Mortgage (EARN) report earnings?
Ellington Residential Mortgage (EARN) is schdueled to report earning on May 04, 2026, After Close (Confirmed).
What is Ellington Residential Mortgage (EARN) earnings time?
Ellington Residential Mortgage (EARN) earnings time is at May 04, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is EARN EPS forecast?
EARN EPS forecast for the fiscal quarter 2026 (Q1) is 0.25.