TWO Earnings

TWO reported its earnings on 2026-02-02, showcasing a revenue of 89.92M against an estimate of -14.88M, resulting in a 704.25% surprise. The EPS was 0.21, surpassing the expected 0.27 by -22.22%. The stock experienced a -0.34% price change on the earnings day and a -6.84% change over the next five days, reflecting market reactions to the results.

Following TWO's earnings announcement on 2026-02-02, the stock price moved by -0.34% on the day of the release. Over the subsequent five days, it saw a -6.84% change. Historically, TWO's stock price tends to shift by an average of 1.91% in the 10 days leading up to earnings and 1.39% in the 10 days following, providing insight into potential market.

For 2026/Q1, analysts estimate TWO's annual revenue to reach -18.06M, while the EPS is projected at 0.34. These estimates reflect recent revisions, with revenue estimates unchanged by 0% and EPS estimates revised downward by -23.93% over the past three months, indicating analyst expectation in the company's performance.

The correlation between TWO's stock price and earnings forecast revisions shows that positive revisions in revenue or EPS often strengthen the stock's fundamentals. Over the past three months, revenue estimates for FY2025 were unchanged by 0%, while EPS estimates moved revised downward by -23.93%. This trend suggests that price dips could present buying opportunities for investors.

Based on historical trends, TWO's stock price typically moves by 1.91% in the 10 days before its earnings and 1.39% in the 10 days after. For the upcoming 2026/Q1 earnings, analysts expect an EPS of 0.34 and revenue of -18.06M.

The earnings call presents mixed signals. Positive aspects include a strong direct-to-consumer origination growth, increased book value, and a declared dividend. However, the lack of a share repurchase program, reduced servicing portfolio, and negative annual return due to litigation expenses temper the outlook. The Q&A reveals cautious management with no major changes in strategy or leverage, and some vague responses. Despite technology enhancements and market undervaluation, the overall sentiment remains balanced, leading to a neutral prediction for the stock price movement.