Annaly Capital posts Q3 net loss amid challenging fixed-income markets

By Reuters News


Overview

  • U.S. mortgage REIT posted Q3 net loss and book value per share declined

  • Earnings available for distribution rose yr/yr and exceeded common stock dividend

  • Company cited challenging fixed income markets and increased leverage for quarterly loss


Outlook

  • Company did not provide specific financial guidance for upcoming quarters or full year in its press release


Result Drivers

  • PORTFOLIO ROTATION - Co said it rotated Agency portfolio into higher coupon specified pools

  • HEDGING STRATEGY - Co added Treasury futures to hedge against market volatility, ending quarter with 100% hedge ratio

  • LOAN FUNDINGS - Co reported record loan fundings in whole loan correspondent channel


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Loss

$1 bln

Q3 Net Interest Income

$543.61 mln

Q3 Pretax Loss

$984.36 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the specialized reits peer group is "buy"

  • Wall Street's median 12-month price target for Annaly Capital Management, Inc. is $24.00, about 35.4% above its October 19 closing price of $17.72

  • The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago


Reuters Recommended Reads

  • Oct 19 - AGNC Investment Q3 net loss widens on Agency MBS market weakness

  • Oct 19 - Dynex Capital's Q3 book value declines, reports loss


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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