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Annaly Capital's (NLY) Q1 Earnings Beat Estimates, Up Y/Y
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Annaly Capital Management, Inc. (NLY - Free Report) – the mortgage real estate investment trust (mREIT) – reported first-quarter 2017 adjusted core earnings of 31 cents per share, beating the Zacks Consensus Estimate by a penny. The prior-year quarter figure was also 30 cents per share.
Net interest income (NII) in the quarter totaled $389.3 million, reflecting an increase of 61.7% year over year.
Quarter in Detail
In the reported quarter, average yield on interest-earning assets was 2.74%, while average cost of interest-bearing liabilities (including interest expense on interest rate swaps) was 1.59%.
This led to a net interest rate spread of 1.15% for the quarter, reflecting a year-over-year increase of 79 basis points. Net interest margin came in at 1.47% compared with 0.79% in the year-ago period.
The company’s investment at fair value (including Agency mortgage-backed securities and Agency debentures) was $72.7 billion as of Mar 31, 2017, up from $65.6 billion as of Mar 31, 2016.
Annaly’s book value per share came in at $11.23 as of Mar 31, 2017, compared with $11.16 as of Dec 31, 2016. At the end of the first quarter, the company’s capital ratio (representing the ratio of stockholders’ equity to total assets) was 13.8%, up from 13.2% at the end of the prior-year quarter.
Leverage was 5.6:1 as of Mar 31, 2017, compared with 5.3:1 as of Mar 31, 2016. The company offered an annualized core return on average equity of 10.09% in the quarter, up from 4.19% 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 first-quarter 2017 net spread and dollar roll income of 64 cents per share (excluding estimated "catch-up" premium amortization benefit), comfortably beating the Zacks Consensus Estimate of 58 cents. The prior-quarter figure was also 64 cents per share.
Annaly Capital Management Inc Price, Consensus and EPS Surprise
Two other REITs which are slated to report results next week are Regency Centers Corporation (REG - Free Report) and Mack-Cali Realty Corporation .
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Annaly Capital's (NLY) Q1 Earnings Beat Estimates, Up Y/Y
Annaly Capital Management, Inc. (NLY - Free Report) – the mortgage real estate investment trust (mREIT) – reported first-quarter 2017 adjusted core earnings of 31 cents per share, beating the Zacks Consensus Estimate by a penny. The prior-year quarter figure was also 30 cents per share.
Net interest income (NII) in the quarter totaled $389.3 million, reflecting an increase of 61.7% year over year.
Quarter in Detail
In the reported quarter, average yield on interest-earning assets was 2.74%, while average cost of interest-bearing liabilities (including interest expense on interest rate swaps) was 1.59%.
This led to a net interest rate spread of 1.15% for the quarter, reflecting a year-over-year increase of 79 basis points. Net interest margin came in at 1.47% compared with 0.79% in the year-ago period.
The company’s investment at fair value (including Agency mortgage-backed securities and Agency debentures) was $72.7 billion as of Mar 31, 2017, up from $65.6 billion as of Mar 31, 2016.
Annaly’s book value per share came in at $11.23 as of Mar 31, 2017, compared with $11.16 as of Dec 31, 2016. At the end of the first quarter, the company’s capital ratio (representing the ratio of stockholders’ equity to total assets) was 13.8%, up from 13.2% at the end of the prior-year quarter.
Leverage was 5.6:1 as of Mar 31, 2017, compared with 5.3:1 as of Mar 31, 2016. The company offered an annualized core return on average equity of 10.09% in the quarter, up from 4.19% 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 first-quarter 2017 net spread and dollar roll income of 64 cents per share (excluding estimated "catch-up" premium amortization benefit), comfortably beating the Zacks Consensus Estimate of 58 cents. The prior-quarter figure was also 64 cents per share.
Annaly Capital Management Inc Price, Consensus and EPS Surprise
Annaly Capital Management Inc Price, Consensus and EPS Surprise | Annaly Capital Management Inc Quote
While Annaly has a Zacks Rank #4 (Sell), AGNC Investment carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Two other REITs which are slated to report results next week are Regency Centers Corporation (REG - Free Report) and Mack-Cali Realty Corporation .
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Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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