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TPG RE Finance Trust (NYSE:TRTX) Q3 Earnings: What Can You Expect?

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TPG RE Finance Trust, Inc. (NYSE:TRTX) is scheduled to report Q3 earnings results after markets close for trading on November 4, 2020.

The company is expected to report earnings of $0.27/share on revenue of $36.343 million. The consensus earnings per share (EPS) of $0.27/share is based on a poll of 4 analysts and represents a decline in eps of −40.8% over the same quarter last year, when the company reported earnings of $0.45/share.

The revenue forecast of $36.343 million based on a poll of 3 analysts implies a year-over-year (YoY) decline in revenue of −18.3%. Last year the company reported $44.488 million in revenue for the quarter.

Expected to report EPS contraction of −40.8% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $36.34 $44.49 −18.3%
EPS $0.27 $0.45 −40.8%

Earnings Call Trends

Historically, management has exceeded analyst expectations 3 out of the last 8 tracked quarters, missed 4 quarters, and met expectations 1 quarter.

What are your expectations from TPG RE Finance Trust, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.25 $0.23 −7.6% Missed
Q1, 2020 $0.39 -$2.20 −659.9% Missed
Q4, 2019 $0.44 $0.45 2.1% Beat
Q3, 2019 $0.43 $0.45 4.2% Beat
Q2, 2019 $0.43 $0.44 2.5% Beat
Q1, 2019 $0.43 $0.43 0% Met
Q4, 2018 $0.44 $0.43 −1.7% Missed
Q3, 2018 $0.44 $0.42 −4.0% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 5.3%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 29, 2020 $8.29 $8.73 5.3% Increase
May 11, 2020 $7.46 $6.73 −9.8% Decline
February 19, 2020 $20.75 $20.83 0.4% Increase
October 28, 2019 $19.84 $20.33 2.5% Increase

Fundamentals And Technical Analysis

TPG RE Finance Trust, Inc. is currently trading at $7.75/share, down −2.9% for the day. The company is trading at approximately 36.2% of its 52-week high of $21.30/share. The company’s stock price is down −11.2% since the last earnings report and down −3.4% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 35.28 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:TRTX Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −4.70 and a forward P/E multiple of −5.98.

TPG RE Finance Trust, Inc.’s current share price also implies a price-to-book (P/B) multiple of 0.47. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $7.75
P/E Ratio −4.7x
P/E Ratio (Fwd) −6.0x
PEG Ratio 0.0
Total Debt / Total Capital 82.2%
Levered Free Cash Flow $139.4 million
Price To Sales 12.9x

Finbox

TPG RE Finance Trust, Inc. is a small-cap stock with a market capitalization of $612.5 million. The company operates in the Financials sector and the Mortgage Real Estate Investment Trusts (REITs) industry.

TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in North America. It invests in commercial mortgage loans; subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments; and commercial real estate collateralized loan obligations and commercial mortgage-backed securities secured by properties primarily in the office, mixed use, multifamily, industrial, retail, and hospitality real estate sectors. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. TPG RE Finance Trust, Inc. was founded in 2014 and is based in New York, New York.

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