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BETHESDA - AGNC Investment Corp (NASDAQ:AGNC) reported third quarter earnings that fell short of analyst expectations, though the mortgage REIT delivered a strong economic return on tangible common equity.
The stock was unchanged following the earnings release.
The company posted net spread and dollar roll income of $0.35 per share for the third quarter, missing the analyst consensus estimate of $0.39. Revenue rose to $903 million from $756 million in the same quarter last year.
AGNC generated a 10.6% economic return on tangible common equity for the quarter, comprised of $0.36 in dividends per common share and a $0.47 increase in tangible net book value per share. The company’s tangible net book value rose to $8.28 per share as of September 30, representing a 6.0% increase from $7.81 at the end of the previous quarter.
"Agency mortgage-backed securities were one of the best performing fixed income asset classes during the quarter and have now outperformed U.S. Treasuries for five consecutive months for the first time since 2013," said Peter Federico, the company’s President, CEO and Chief Investment Officer.
The company maintained its quarterly dividend of $0.12 per share, totaling $0.36 for the quarter. AGNC’s investment portfolio totaled $90.8 billion as of September 30, with $76.3 billion in Agency MBS and $13.8 billion in net forward purchases of Agency MBS.
During the quarter, AGNC raised $345 million through preferred stock offerings and issued $309 million of common equity through At-the-Market offerings.
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