Chimera Investment (NYSE:CIM) Posts Quarterly Earnings Results, Misses Estimates By $0.07 EPS

Key Points

• Chimera Investment reported quarterly earnings of $0.38 per share, missing analyst estimates of $0.45 by $0.07.
• The REIT recorded a $193.6 million GAAP net loss, while book value per share fell 16.5% to $14.82 as higher interest rates and wider mortgage spreads reduced asset valuations; management said most adjustments were unrealized.
• Quarterly earnings available for distribution were $0.38 per share, and year-to-date distributions of $1.38 per share exceeded dividends of $1.35. Chimera said its hedges helped it meet margin calls without selling assets.

Chimera Investment (NYSE:CIM - Get Free Report) issued its quarterly earnings results on Thursday. The real estate investment trust reported $0.38 EPS for the quarter, missing analysts' consensus estimates of $0.45 by ($0.07), FiscalAI reports. The company had revenue of ($118.00) million during the quarter, compared to the consensus estimate of $103.10 million. Chimera Investment had a return on equity of 9.82% and a net margin of 0.14%.

Here are the key takeaways from Chimera Investment's conference call:

• Chimera reported a $193.6 million GAAP net loss, and book value per share fell 16.5% to $14.82 as higher rates and wider mortgage spreads reduced asset valuations. The company said most valuation adjustments were unrealized and that credit performance remained within expectations.
• The investment portfolio generated $0.38 per share of earnings available for distribution (EAD) in the quarter; year-to-date EAD of $1.38 per share exceeded dividends of $1.35. Management said hedges helped cover margin calls, and Chimera did not need to sell assets to meet them.
• HomeXpress originated a record $1.12 billion in loans but earned only $430,000 in EBTDA, with a negative 7-basis-point net origination margin amid rapid rate and spread moves. Management expects roughly flat profitability in the fourth quarter while it clears older loans, with a return to profitability expected in the first quarter of 2027.
• Chimera completed its first securitization of HomeXpress-originated loans through the new Prism conduit, pricing the AAA bonds at a 160-basis-point spread amid a difficult market. The company also refinanced two non-mark-to-market financing facilities, extending maturities and lowering funding costs.
• Management said September’s repricing improved prospective returns on agency mortgage-backed securities, estimating agency returns in the mid-teens, and described the agency portfolio as a liquid source of capital for future investments. It cautioned that loans held ahead of securitization and continued market volatility could weigh on fourth-quarter results.

Chimera Investment Stock Down 8.9%

NYSE:CIM traded down $0.78 on Thursday, reaching $7.90. 3,373,357 shares of the stock traded hands, compared to its average volume of 1,496,154. The company has a market capitalization of $661.66 million, a price-to-earnings ratio of -7.75 and a beta of 1.75. The company has a current ratio of 0.07, a quick ratio of 0.07 and a debt-to-equity ratio of 2.34. Chimera Investment has a 12 month low of $7.69 and a 12 month high of $14.18. The company's fifty day simple moving average is $9.77 and its 200 day simple moving average is $12.20.

Chimera Investment Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 30th. Shareholders of record on Wednesday, September 30th were paid a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a yield of 22.8%. The ex-dividend date was Wednesday, September 30th. Chimera Investment's dividend payout ratio (DPR) is currently -176.47%.

Trending Headlines about Chimera Investment

Here are the key news stories impacting Chimera Investment this week:

• Neutral Sentiment: The board declared fourth-quarter cash dividends of $0.50 per preferred share. This supports preferred shareholders but is not a common-stock dividend announcement. Article: Chimera Investment Declares Fourth-Quarter Preferred Stock Dividends
• Negative Sentiment: Chimera reported a GAAP net loss of $194 million, or $2.31 per diluted common share, and a 13.98% negative economic return for Q3. GAAP book value was $14.82 per common share. Article: Chimera Investment Corporation Reports Third Quarter 2026 Results
• Negative Sentiment: Earnings available for distribution were $0.38 per adjusted diluted share, missing the $0.45 consensus estimate. The reported revenue figure was negative $118 million, versus analyst estimates of $103.1 million, adding to concerns about the quarter. Article: Chimera Investment Q3 Earnings Results

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on CIM shares. Keefe, Bruyette & Woods reduced their price objective on Chimera Investment from $15.00 to $14.00 and set a "market perform" rating for the company in a research report on Thursday, August 6th. Weiss Ratings cut Chimera Investment from a "sell (d+)" rating to a "sell (d)" rating in a research note on Friday, September 18th. One research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $14.50.

About Chimera Investment

Chimera Investment Corporation NYSE: CIM is a real estate investment trust that invests primarily in residential mortgage assets and other real estate-related investments. The company seeks to generate income from a portfolio that may include residential mortgage loans, agency and non-agency residential mortgage-backed securities, and other mortgage-related assets.

Chimera's investments can include whole residential mortgage loans and securitized interests backed by mortgages. Its portfolio has historically included both agency assets, which carry guarantees from government-sponsored entities or government agencies, and non-agency assets, which generally involve greater credit exposure.

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