Orchid Island Capital Q3 profit rises on RMBS and derivative gains

Orchid Island Capital

23/10/2025 21:36

Overview

Orchid Island Q3 net income rises to $72.1 mln, driven by RMBS and derivative gains

Book value per share increased by $0.12, contributing to a 6.7% total return

Company maintains strong liquidity with $620 mln in cash and unpledged securities

Outlook

Company sees potential for attractive returns despite economic uncertainties

Orchid Island Capital notes economic resilience amid tariffs and stable consumer spending

Company highlights uncertainty in economic growth due to tariffs and government shutdown

Result Drivers

RMBS AND DERIVATIVE GAINS - Net realized and unrealized gains of $50.6 mln on RMBS and derivative instruments drove net income

STABLE MARKET CONDITIONS - CEO Robert E. Cauley noted supportive market conditions for levered Agency RMBS investors, with stable interest rates

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
$0.53
Q3 Net Income
$72.10 mln
Q3 Net Interest Income
$26.90 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the specialized reits peer group is "buy"

Wall Street's median 12-month price target for Orchid Island Capital Inc is $8.00, about 6.5% above its October 21 closing price of $7.48

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nGNXPgS7Q

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)