Citizens JMP reiterates Market Perform rating on ARMOUR Residential stock

Investing.com - Citizens JMP has reiterated its Market Perform rating on ARMOUR Residential REIT, Inc. (NYSE:ARR), while lowering its earnings available for distribution (EAD) estimates for the company. The REIT, currently trading at $16.85 with a market capitalization of $1.38 billion, offers a substantial 17.09% dividend yield and has maintained dividend payments for 16 consecutive years.

The research firm reduced its 2025 EAD estimate to $3.20 from a previous $3.64, representing a 12.1% decrease in projected earnings. For 2026, Citizens JMP lowered its EAD estimate to $3.44 from $3.71, a 7.3% reduction.

Citizens JMP’s estimate for ARMOUR Residential’s current second quarter of 2025 stands at $0.76 per share. The firm did not provide specific reasons for the downward revisions to its earnings estimates.

Despite the reduced earnings outlook, Citizens JMP maintained its Market Perform rating on the mortgage real estate investment trust, noting that shares appear fairly valued at 0.98 times current estimated book value.

The valuation multiple of 0.98x book value aligns precisely with the median valuation for ARMOUR’s Agency mortgage REIT peers, according to Citizens JMP’s analysis.

In other recent news, ARMOUR Residential REIT Inc. reported its first-quarter 2025 earnings, revealing a miss on both earnings per share (EPS) and revenue expectations. The company posted an EPS of $0.86, falling short of the $0.89 forecast, while revenue was reported at $67.6 million, below the anticipated $71.37 million. Despite these results, ARMOUR maintained strong liquidity with over $750 million and raised $371 million through an at-the-market offering. The company’s book value per share was noted at $16.56 as of April 23. Analysts have projected ARMOUR’s future EPS to range from $0.81 to $0.85 for upcoming quarters, with annual forecasts of $3.16 for 2025 and $3.35 for 2026. ARMOUR’s management emphasized the importance of liquidity and a diversified portfolio in their strategy. The earnings call also highlighted ongoing challenges in the mortgage and housing markets, which continue to impact the company’s financial performance.

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