Anticipated Profit Forecast: Cherry Hill Mortgage for the Second Quarter of 2025
Cherry Hill Mortgage Investment Corporation (CHMI) is gearing up to release its Q2 earnings results on August 7th, after market close. Over the past two years, the company has managed to beat EPS estimates only 25% of the time, while it has surpassed revenue estimates 13% of the time.
For Q2 2025, CHMI reported EPS of $0.11 per share, missing the Zacks consensus estimate ranges which varied from $0.12 to $0.13 per share. This resulted in an earnings surprise of approximately -16.7% to -23%, depending on the source comparison. Conversely, revenue for Q2 2025 came in at about $11.6 million, exceeding consensus estimates by roughly 4.4%.
Recent trends show EPS volatility for CHMI. A prior quarter had a strong positive surprise of +54.5%, but generally, EPS beats have been rare in the recent fiscal year. According to a financial forecast from mid-2025, revenue is projected to decline significantly by about 78.76% in 2025 compared to 2024, but then increase by approximately 54.92% in 2026. EPS forecasts show a sharp rebound in 2025 with a projected EPS increase of over 700% from 2024's $0.07 to $0.55, and further growth to $0.65 expected in 2026.
These forecasted changes suggest analysts expect operational improvements or recovery following recent challenges. However, the company’s earnings volatility and dividend sustainability remain concerns for investors amid ongoing market challenges.
In a recent development, Cherry Hill Mortgage has appointed Apeksha Patel as interim CFO. The company's shares are traded on the NYSE under the ticker symbol CHMI. No updates on the revisions to EPS or revenue estimates over the last 3 months are provided.
[1] Zacks Investment Research [2] Yahoo Finance [3] MarketWatch [4] Seeking Alpha
- Despite the Q2 2025 EPS result missing analyst estimates, CHMI's revenue still managed to surpass them, suggesting that investing in this business might still have potential for some financial gain.
- As Cherry Hill Mortgage continues to face concerns regarding its earnings volatility and dividend sustainability, careful investment strategies in the finance sector should consider these factors, particularly amid ongoing market challenges.
