Orchid Island Capital Swings to Q2 Profit of $0.44/Share on RMBS Gains
ORC is trading near its 52-week low of $6.415 (4.8% above the low).
Summary
Orchid Island Capital reported preliminary Q2 net income of $0.44 per share, a sharp reversal from the $0.11 per share loss in Q1. The swing was driven by $0.18 per share in net realized and unrealized gains on RMBS and derivatives. Book value per share rose to $7.22, implying a 6.2% total return on equity for the quarter. This follows a Q1 marked by a net loss, a dividend cut, and significant dilution from ATM offerings. The stock trades near its 52-week low of $6.415, so the return to profitability and book value growth could force a reassessment of the bearish thesis. The expanded $25 million buyback program announced in June adds a potential support mechanism if the company continues to generate capital.
At the time of this announcement, ORC was trading at $6.72 on NYSE in the Finance sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $6.42 to $8.40. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.