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Invesco Mortgage Capital posts Q3 loss per share

By Reuters News


Overview

  • US mortgage REIT reported Q3 net loss per share of $0.92, reversing prior quarter's profit

  • Earnings available for distribution per share fell to $0.47 from $0.50 in Q2

  • Book value per share dropped 16% to $6.74; economic return was negative 11.6%


Outlook

  • Company maintains constructive outlook for Agency RMBS and Agency CMBS sectors

  • Company expects Agency RMBS to benefit from increased institutional investor participation

  • Company sees Agency CMBS as attractive due to elevated yields and diversification benefits


Result Drivers

  • RATE VOLATILITY - Co said increased interest rate volatility and wider mortgage-backed securities spreads weighed on portfolio returns

  • NEGATIVE RETURNS - Portfolio produced negative returns relative to Treasuries, partially offset by improved swap spreads

  • PORTFOLIO SHIFT - Co reduced Agency CMBS allocation and increased Agency RMBS exposure amid wider spreads


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Loss

$98.80 mln

Q3 Net Interest Income

$33.90 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 1 "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 Invesco Mortgage Capital Inc is $7.75, about 42.2% above its October 28 closing price of $5.45

  • The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 4 three months ago


Reuters Recommended Reads

  • Oct 28 - Adamas Trust Q3 book value falls 22% amid market volatility

  • Oct 28 - Franklin BSP Realty Trust posts Q3 net loss on credit losses

  • Oct 29 - Blackstone Mortgage Trust posts Q3 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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