Orchid Capital reports Q4 EPS 52c, consensus (25c)

Commenting on the fourth quarter results, Robert E. Cauley, Chairman and Chief Executive Officer, said, “The last quarter of 2023 may prove to be a very pivotal period. At the conclusion of the third quarter of 2023 several factors were driving interest rates rapidly higher and the market fully expected rates to remain higher for an extended period. Rapidly expanding federal deficits were a key driver and the Federal Reserve’s (the “Fed”) own outlook, expressed via their quarterly “dot plots,” reflected rates remaining high through 2024. The outlook began to change in early November. The impetus was twofold. Economic data, particularly inflation data, appeared to moderate. The Fed reacted to this development in their public comments. Even the Chairman at the press conference at the conclusion of their December meeting strongly hinted that if inflation continued to moderate, they were done raising rates and they would likely cut rates – perhaps relatively soon.”