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

Chimera Investment (NYSE:CIM) issued its 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. Chimera Investment had a return on equity of 9.82% and a net margin of 0.14%. The firm had revenue of ($118.00) million for the quarter, compared to analyst estimates of $103.10 million.

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 Trading Down 7.5%

Shares of NYSE CIM opened at $7.33 on Friday. Chimera Investment has a 1 year low of $7.24 and a 1 year high of $14.18. The company has a debt-to-equity ratio of 2.34, a current ratio of 0.07 and a quick ratio of 0.07. The stock has a market cap of $613.18 million, a P/E ratio of -2.39 and a beta of 1.75. The firm has a 50-day moving average of $9.68 and a 200 day moving average of $12.17.

Chimera Investment Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 30th. Stockholders of record on Wednesday, September 30th were issued a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a dividend yield of 24.6%. The ex-dividend date was Wednesday, September 30th. Chimera Investment’s dividend payout ratio is presently -176.47%.

Analyst Upgrades and Downgrades

CIM has been the topic of several analyst reports. Weiss Ratings lowered shares of Chimera Investment from a “sell (d+)” rating to a “sell (d)” rating in a report on Friday, September 18th. Keefe, Bruyette & Woods cut their target price on Chimera Investment from $15.00 to $14.00 and set a “market perform” rating on the stock in a research note on Thursday, August 6th. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $14.50.

Chimera Investment News Roundup

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

• Positive Sentiment: Management highlighted record origination volume on the Q3 earnings call, suggesting continued activity in Chimera’s loan business. Article: Chimera Investment Corp Q3 2026 Earnings Call Highlights
• Neutral Sentiment: The board declared fourth-quarter cash dividends on preferred stock. This supports preferred shareholders but does not indicate a change to the common-stock dividend. Article: Chimera Investment Declares Fourth-Quarter Preferred Stock Dividends
• Negative Sentiment: Chimera reported $0.38 per share in earnings available for distribution, missing the $0.45 analyst consensus. It also recorded a $194 million GAAP loss, or $2.31 per diluted common share, and a negative 13.98% economic return—key headwinds for investors. Article: Chimera Investment Corporation Reports Third Quarter 2026 Results

Chimera Investment Company Profile

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.