Great Ajax Corp Up 6.96% To $4.61 After Earnings Miss

Great Ajax Corp (AJX) missed earnings projections on 11/2/2023 for Q3 2023.

Great Ajax Corp's earnings came in at an EPS loss of $0.09 per share, 400% lower than estimates for an EPS of $0.03 per share. The firm's earnings are down 164% since reporting $0.14 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus analyst estimates were at $7.7 million. The Real Estate company missed on those expectations for its third quarter with revenue of $1.1 million, a negative revenue surprise of $6.6 million (86%). The firm managed negative 90% growth year-over-year due to Great Ajax Corp reporting quarterly revenue of $10.5 million in its year-ago quarter. Great Ajax Corp achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is up 6.96% to $4.61 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

The average recommendation from Wall Street analysts was a Strong Buy which may get revised based on this new data.

Trading in the five days leading up to the report earned Great Ajax Corp a Bullish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 40. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

Great Ajax Corp is an externally managed real estate company. The company's primary business is acquiring, investing in and managing a portfolio of mortgage loans. It primarily targets acquisitions of re-performing loans (RPLs) including residential mortgage loans and small balance commercial mortgage loans (SBC loans). Great Ajax operates in a single segment. The company also holds real-estate owned (REO) properties acquired upon the foreclosure, other settlement of owned non-performing loans.