BrightSpire Capital (NYSE:BRSP) Issues Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• BrightSpire Capital reported Q EPS of $0.14 versus a $0.15 consensus and revenue of $55.6M versus $63.12M, meaning it missed estimates; the company posted a 7.28% ROE but a -23.82% net margin.
• Shares fell to $5.81 after the report; BrightSpire pays a $0.16 quarterly dividend (annualized $0.64) for a 11.0% dividend yield
• Analysts are mixed — five Buy ratings and two Sell ratings — leaving a MarketBeat consensus of "Hold" with an average target price of $6.70, while individual firms have issued both upgrades and downgrades.

BrightSpire Capital (NYSE:BRSP - Get Free Report) posted its earnings results on Tuesday. The company reported $0.14 EPS for the quarter, missing the consensus estimate of $0.15 by ($0.01), FiscalAI reports. BrightSpire Capital had a positive return on equity of 7.28% and a negative net margin of 23.82%.The business had revenue of $55.60 million for the quarter, compared to analysts' expectations of $63.12 million.

BrightSpire Capital Price Performance

Shares of BRSP traded down $0.27 during midday trading on Wednesday, reaching $5.81. The stock had a trading volume of 525,759 shares, compared to its average volume of 852,508. The company's 50-day moving average is $5.75 and its 200 day moving average is $5.70. BrightSpire Capital has a 12-month low of $4.82 and a 12-month high of $6.16. The company has a current ratio of 0.46, a quick ratio of 0.46 and a debt-to-equity ratio of 2.21. The company has a market capitalization of $756.28 million, a price-to-earnings ratio of -22.33, a price-to-earnings-growth ratio of 2.26 and a beta of 1.37.

BrightSpire Capital Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st were issued a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a dividend yield of 11.0%. The ex-dividend date was Tuesday, March 31st. BrightSpire Capital's dividend payout ratio is presently -246.15%.

Analyst Ratings Changes

Several equities analysts recently commented on BRSP shares. BTIG Research upgraded BrightSpire Capital from a "neutral" rating to a "buy" rating and set a $7.00 target price for the company in a research report on Wednesday, April 22nd. JonesTrading restated a "buy" rating and set a $6.50 target price on shares of BrightSpire Capital in a research report on Wednesday, February 18th. Weiss Ratings cut BrightSpire Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, February 23rd. Barclays boosted their target price on BrightSpire Capital from $5.00 to $6.00 and gave the stock an "underweight" rating in a research report on Thursday, February 19th. Finally, B. Riley Financial initiated coverage on BrightSpire Capital in a research note on Monday, January 5th. They set a "buy" rating and a $7.50 price target for the company. Five analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $6.70.

Institutional Investors Weigh In On BrightSpire Capital

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Cerity Partners LLC lifted its stake in shares of BrightSpire Capital by 9.1% in the 4th quarter. Cerity Partners LLC now owns 29,807 shares of the company's stock valued at $167,000 after acquiring an additional 2,480 shares during the last quarter. National Bank of Canada FI lifted its stake in shares of BrightSpire Capital by 50.0% in the 3rd quarter. National Bank of Canada FI now owns 7,500 shares of the company's stock valued at $41,000 after acquiring an additional 2,500 shares during the last quarter. M&T Bank Corp lifted its stake in shares of BrightSpire Capital by 22.5% in the 2nd quarter. M&T Bank Corp now owns 13,641 shares of the company's stock valued at $69,000 after acquiring an additional 2,501 shares during the last quarter. Abel Hall LLC lifted its stake in shares of BrightSpire Capital by 7.5% in the 4th quarter. Abel Hall LLC now owns 44,536 shares of the company's stock valued at $249,000 after acquiring an additional 3,123 shares during the last quarter. Finally, Commonwealth Equity Services LLC lifted its stake in shares of BrightSpire Capital by 3.8% in the 4th quarter. Commonwealth Equity Services LLC now owns 92,344 shares of the company's stock valued at $517,000 after acquiring an additional 3,342 shares during the last quarter. Institutional investors own 56.57% of the company's stock.

BrightSpire Capital Company Profile

BrightSpire Capital Inc NYSE: BRSP is a real estate investment trust (REIT) specializing in commercial real estate debt. The company primarily originates, acquires and manages a diversified portfolio of mortgage loans, mezzanine loans and preferred equity investments secured by office, retail, industrial, multifamily and hospitality assets across the United States. By focusing on income-producing credit instruments, BrightSpire seeks to deliver attractive risk-adjusted returns to its shareholders through regular dividend distributions.

BrightSpire’s investment strategy spans the capital structure of commercial real estate, with an emphasis on senior mortgages that offer more stable cash flows and downside protection.

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