Lument Finance Trust Third Quarter 2023 Earnings: Beats Expectations

Lument Finance Trust (NYSE:LFT) Third Quarter 2023 Results

Key Financial Results

• Revenue: US$8.83m (up 119% from 3Q 2022).
• Net income: US$5.17m (up by US$4.86m from 3Q 2022).
• Profit margin: 59% (up from 7.8% in 3Q 2022). The increase in margin was primarily driven by higher revenue.
• EPS: US$0.099 (up from US$0.006 in 3Q 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Lument Finance Trust Revenues and Earnings Beat Expectations

Revenue exceeded analyst estimates by 7.9%. Earnings per share (EPS) also surpassed analyst estimates by 29%.

Looking ahead, revenue is forecast to grow 18% p.a. on average during the next 2 years, compared to a 35% growth forecast for the Mortgage REITs industry in the US.

Performance of the American Mortgage REITs industry.

The company's shares are up 2.5% from a week ago.

Risk Analysis

It's necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Lument Finance Trust (at least 1 which is potentially serious), and understanding them should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.