KBW raises Ellington Financial EPS outlook to $2.12

Keefe, Bruyette & Woods (KBW) has raised its EPS guidance for Ellington Financial to $2.12 for 2026 and $2.05 for 2027, maintaining an "outperform" rating. This positive forecast follows Ellington's strong Q2 adjusted distributable earnings of $0.60 per share, significantly exceeding KBW's previous estimates. Longbridge Financial, Ellington's reverse mortgage subsidiary, played a crucial role, contributing over half of the Q2 profit and showing substantial growth in reverse mortgage originations.