Jan. 12 press release. The only question is the taxable income, which will likely be $1.50+. There are no worries here, but it will exceed $2.15.
AGNC Announces Preliminary Estimates of Select Financial Data for Q4 2010 BETHESDA, Md., Jan. 12, 2011 /PRNewswire via COMTEX/ --American Capital Agency Corp. (Nasdaq: AGNC) ("AGNC" or the "Company") announced preliminary estimates of select financial data for the fourth quarter 2010 and as of December 31, 2010.
The Company estimates that, when finally determined, earnings per share for the quarter ended December 31, 2010, will exceed $2.25. Earnings per share for the quarter ended December 31, 2010, were favorably impacted by non-recurring net realized and unrealized gains on its derivative instruments, such as to-be-announced (TBA) mortgage short positions and payer swaptions, which the Company uses primarily to hedge increases in interest rates, and by net realized gains on available-for-sale securities. Net of these items, the Company expects earnings per share for the quarter ended December 31, 2010, will exceed $1.20, including an anticipated benefit from slower projected prepayment speeds.
The Company expects that taxable net income for the quarter will be lower than GAAP net income, due partly to the deferred recognition of certain unrealized gains/losses for tax purposes and other timing related differences. AGNC expects that its undistributed taxable income as of December 31, 2010, will exceed $40 million and that the Company will incur a federal excise tax of less than $1.0 million as a result of its decision to defer a portion of its 2010 taxable income.
The Company expects that when finally determined, book value per share as of December 31, 2010, will exceed $24.00. The Company estimates that as of December 31, 2010, the fair value of its investment portfolio was approximately $13.5 billion and its leverage ratio, including unsettled trades, was approximately 7.8x.