MFA Financial Q3 adjusted EPS misses estimates on market volatility

Overview

• US mortgage investor's Q3 adjusted EPS missed analyst expectations

• Q3 adjusted net income also missed analyst expectations

• Company posted a GAAP net loss amid market volatility and wider spreads

Outlook

• Company did not provide specific guidance for future quarters or the full year in the press release

Result Drivers

• MARKET VOLATILITY - Co said spiking Treasury yields and heightened volatility widened spreads and negatively impacted results

• PORTFOLIO ROTATION - MFA acquired $1.6 bln of assets, including a $750 mln rotation within Agency MBS into higher coupon bonds, per President Bryan Wulfsohn

• RESECURITIZATION - Co re-securitized $447 mln of seasoned NPL collateral, unlocking $40 mln of capital and additional financing capacity

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

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

• Wall Street's median 12-month price target for MFA Financial, Inc. is $10.00, about 50.6% above its November 3 closing price of $6.64

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

• Nov 3 - Angel Oak Mortgage Q3 net loss widens, book value falls

• Nov 3 - Claros Mortgage Trust posts Q3 net loss

• Nov 3 - Redwood Trust Q3 loss widens

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.)