Wall Street analysts forecast that Redwood Trust (RWT) will report quarterly earnings of $0.16 per share in its upcoming release, pointing to a year-over-year increase of 220%. It is anticipated that revenues will amount to $26 million, exhibiting an increase of 30% compared to the year-ago quarter.

Over the last 30 days, there has been a downward revision of 1.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

Given this perspective, it's time to examine the average forecasts of specific Redwood Trust metrics that are routinely monitored and predicted by Wall Street analysts.

Analysts predict that the 'Net interest income' will reach $25.90 million. The estimate is in contrast to the year-ago figure of $20 million.

The combined assessment of analysts suggests that 'Total non-interest income (loss), net' will likely reach $37.06 million. Compared to the current estimate, the company reported $44 million in the same quarter of the previous year.

Based on the collective assessment of analysts, 'Non-interest income (loss)- Investment fair value changes, net' should arrive at -$5.75 million. The estimate compares to the year-ago value of $15 million.

View all Key Company Metrics for Redwood Trust here>>>

Shares of Redwood Trust have experienced a change of +8.1% in the past month compared to the +4.2% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), RWT is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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