Starwood Q3 DE of $0.31 Beats Consensus Despite $389.7M GAAP Loss; Shares Up 2.4%
STWD is trading near its 52-week low of $11.84 (8.7% above the low).
Summary
Starwood's Q3 distributable earnings came in at $0.31 per diluted share, well above the $0.26 Visible Alpha consensus, even as the quarter carried a $389.7M GAAP net loss from a $336.6M credit loss provision. Revenue of $545.85M topped the $525.27M analyst estimate, helped by servicing fees of $30.32M versus a $17.08M consensus and rental income of $90.55M. Shares rose 2.41% to $13.19 pre-market, so the market is looking past the GAAP loss to the cash earnings beat. CEO Sternlicht flagged the sharp rise in rates as a shock to the property sector, while President DiModica noted roughly $2.1B of financing was completed earlier this year at rates below what is available now. The earnings call is at 10:00 AM ET today.
At the time of this announcement, STWD was trading at $12.87 on NYSE in the Finance sector, with a market capitalization of approximately $4.8B. The 52-week trading range was $11.84 to $18.66. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.