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Annaly Capital (NLY) Q3 Earnings Beat Estimates, Down Y/Y
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Annaly Capital Management, Inc. (NLY - Free Report) – the mortgage real estate investment trust (mREIT) – reported third-quarter 2016 core earnings of 29 cents per share, beating the Zacks Consensus Estimate by a penny. However, it came lower than 30 cents earned in the year-ago quarter.
Net interest income in the quarter totaled $384.5 million, up 12.9% year over year. The Zacks Consensus Estimate was $248 million.
Quarter in Detail
For the reported quarter, average yield on interest-earning assets was 2.70%, while average cost of interest-bearing liabilities (including interest expense on interest rate swaps) was 1.57%.
This led to a net interest rate spread of 1.13% for the quarter, reflecting a year-over-year increase of 30 basis points. Net interest margin came in at 1.40% compared with 1.27% in the year-ago period.
The company’s investment at fair value (including Agency mortgage-backed securities and Agency debentures) was $73.5 billion as of Sep 30, 2016, up from $66.2 billion as of Sep 30, 2015.
Annaly’s book value per share came in at $11.83 as of Sep 30, 2016, compared with $11.99 as of Sep 30, 2015. At the end of the third quarter, the company’s capital ratio (representing the ratio of stockholders’ equity to total assets) was 13.3%, down from 14.0% at the end of the prior-year quarter.
Leverage was 5.3:1 as of Sep 30, 2016, compared with 4.8:1 as of Sep 30, 2015. The company offered an annualized core return on average equity of 10.09% in the quarter, up from 9.67% in the year-ago quarter.
Our Take
Going forward, we believe Annaly’s diversification into commercial assets would help enhance its top-line growth.
Another mREIT – AGNC Investment Corp. (AGNC - Free Report) – reported third-quarter 2016 net spread and dollar roll income of 64 cents per share (excluding estimated "catch-up" premium amortization benefit) that beat the Zacks Consensus Estimate of 55 cents. The reported figure also came higher than 56 cents earned in the prior quarter.
Two other REITs which are slated to report results this week are EPR Properties (EPR - Free Report) and Lamar Advertising Co. (LAMR - Free Report) .
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Annaly Capital (NLY) Q3 Earnings Beat Estimates, Down Y/Y
Annaly Capital Management, Inc. (NLY - Free Report) – the mortgage real estate investment trust (mREIT) – reported third-quarter 2016 core earnings of 29 cents per share, beating the Zacks Consensus Estimate by a penny. However, it came lower than 30 cents earned in the year-ago quarter.
Net interest income in the quarter totaled $384.5 million, up 12.9% year over year. The Zacks Consensus Estimate was $248 million.
Quarter in Detail
For the reported quarter, average yield on interest-earning assets was 2.70%, while average cost of interest-bearing liabilities (including interest expense on interest rate swaps) was 1.57%.
This led to a net interest rate spread of 1.13% for the quarter, reflecting a year-over-year increase of 30 basis points. Net interest margin came in at 1.40% compared with 1.27% in the year-ago period.
The company’s investment at fair value (including Agency mortgage-backed securities and Agency debentures) was $73.5 billion as of Sep 30, 2016, up from $66.2 billion as of Sep 30, 2015.
Annaly’s book value per share came in at $11.83 as of Sep 30, 2016, compared with $11.99 as of Sep 30, 2015. At the end of the third quarter, the company’s capital ratio (representing the ratio of stockholders’ equity to total assets) was 13.3%, down from 14.0% at the end of the prior-year quarter.
Leverage was 5.3:1 as of Sep 30, 2016, compared with 4.8:1 as of Sep 30, 2015. The company offered an annualized core return on average equity of 10.09% in the quarter, up from 9.67% in the year-ago quarter.
Our Take
Going forward, we believe Annaly’s diversification into commercial assets would help enhance its top-line growth.
Another mREIT – AGNC Investment Corp. (AGNC - Free Report) – reported third-quarter 2016 net spread and dollar roll income of 64 cents per share (excluding estimated "catch-up" premium amortization benefit) that beat the Zacks Consensus Estimate of 55 cents. The reported figure also came higher than 56 cents earned in the prior quarter.
Both Annaly and AGNC Investment carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ANNALY CAP MGMT Price, Consensus and EPS Surprise
ANNALY CAP MGMT Price, Consensus and EPS Surprise | ANNALY CAP MGMT Quote
Two other REITs which are slated to report results this week are EPR Properties (EPR - Free Report) and Lamar Advertising Co. (LAMR - Free Report) .
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>