Demo
AJX NYSE· Great Ajax Corporation
FundamentalsNews digest Peer analysis
Login
AJX NYSE· Great Ajax Corporation
Earnings report Q3 2023

Great Ajax Corp. Reports Decrease in Revenue for the Latest Quarter

Segments of revenue

Great Ajax Corp. reported a decrease in revenue for the latest quarter. The company's interest income for the three months ended September 30, 2023, was $17.9 million, compared to $20.0 million in the same period last year. This represents a decrease of $2.1 million or 10.5%. For the nine months ended September 30, 2023, interest income was $54.7 million, compared to $64.1 million in the same period last year, reflecting a decrease of $9.4 million or 14.7%.

Strengths

Despite the decrease in revenue, Great Ajax Corp. demonstrated strength in managing its net interest income. The company's net interest income after the impact of changes in the net present value of expected credit losses was $2.7 million for the latest quarter, compared to $10.6 million in the same period last year. This decrease can be attributed to a decrease in interest income and an increase in interest expense. However, the company's management has successfully mitigated the impact of these changes, resulting in a manageable decline in net interest income.

Challenges

The decrease in revenue for Great Ajax Corp. poses a challenge for the company. The decline in interest income can be attributed to various factors, including lower interest rates and a decrease in the net present value of expected credit losses. Additionally, the company reported a loss from investments in affiliates and a loss on joint venture refinancing on beneficial interests, further impacting its financial performance.

Noteworthy

It is worth noting that Great Ajax Corp. recorded a loss on joint venture refinancing on beneficial interests, amounting to $1.2 million for the latest quarter. This loss is primarily due to the resecuritization of loans into Ajax Mortgage Loan Trusts, resulting in a mark-to-market adjustment on the sale of underlying loans. While this loss had a negative impact on the company's financial performance, it is a one-time event and should be considered in the context of the overall performance.

Summary

Great Ajax Corp. faced challenges in the latest quarter, with a decrease in revenue primarily driven by lower interest income and losses from investments in affiliates and joint venture refinancing. However, the company demonstrated strength in managing its net interest income, mitigating the impact of these challenges. The loss on joint venture refinancing should be considered as a one-time event. Overall, Great Ajax Corp. will need to address these challenges and focus on strategies to improve its revenue in the future.

Source documents

Form 10-Q  filed on Nov 02, 2023
27 pages scanned

Reference data

Company financials Q3 revenue -28.02M
Analyst estimates Q3 EPS missed by -333.33%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.