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Earnings Review and Free Research Report: AGNC’s Q3 Results Lagged Market Forecasts

Research Desk Line-up: Two Harbors Investment Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 16, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on AGNC Investment Corp. (NASDAQ: AGNC) ("AGNC"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=AGNC, following the Company's release of its financial results on October 25, 2017, for the third quarter of the fiscal year 2017. The Bethesda, Maryland-based Company's net spread and dollar roll income per share fell on a year-over-year basis, lagging market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:


Get more of our free earnings reports coverage from other constituents of the REIT - Residential industry. Pro-TD has currently selected Two Harbors Investment Corp. (NYSE: TWO) for due-diligence and potential coverage as the Company announced on November 07, 2017, its financial results for Q3 2017 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Two Harbors Investment when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on AGNC; also brushing on TWO. With the links below you can directly download the report of your stock of interest free of charge at:



Earnings Reviewed

In Q3 FY17, AGNC's interest income came in at $318 million compared to $315 million in the quarter ended September 30, 2016. The Company's interest expenses increased to $140 million during the reported quarter from $96 million in the previous year's same quarter. Furthermore, net interest income stood at $178 million for Q3 FY17, which was lower than the $219 million reported in Q3 FY16.

For the quarter ended September 30, 2017, the Company reported a comprehensive income available to common stockholders of $361 million, or $0.99 per common diluted share, compared to $414 million, or $1.25 per common diluted share, in Q3 FY16. AGNC's net spread and dollar roll income available to common stockholders stood at $216 million, or $0.59 per common share, versus $204 million, or $0.62 per common share, in the year ago comparable quarter. The Company's net spread and dollar roll income missed market consensus estimates of $0.63 per common share.

Operating Metrics

The Company's economic return on common equity came in flat at 5.6% for Q3 FY17. The economic return on equity comprised of $0.54 as dividend per common share, and a $0.53 increase in tangible net book value per common share.

As on September 30, 2017, the real estate investment trust's net book value per common share stood at $21.19 compared to $22.91 per common share in the year ago corresponding quarter. Furthermore, tangible net book value per common share was $19.78 as of September 30, 2017, compared to $21.23 per common share as on September 30, 2016.

Portfolio Standings and Liquidity

AGNC's investment portfolio totaled $72.5 billion as on September 30, 2017, which included $52.3 billion of agency mortgage backed securities (MBS); $19.4 billion of to-be-announced (TBA) mortgage positions; and $0.8 billion of credit risk transfer (CRT) and non-Agency securities.

As on September 30, 2017, the Company's investment's "at risk" leverage ratio was 8.0x, while average tangible net book value "at risk" leverage stood at 7.9x. For Q3 FY17, the Company's investment portfolio bore a weighted-average constant repayment rate of 12.1% compared to 10.9% in the prior year's same quarter.

During Q3 FY17, the Company's average assets yield on its "balance sheet funded assets" (investment portfolio excluding the net TBA position) came in at 2.72% versus 2.60% in Q3 FY16. Furthermore, AGNC's combined annualized net interest rate spread on the Company's balance sheet and dollar roll funded assets was 1.41% for the reported quarter, down from 1.55% for the prior year's comparable quarter.

Also, as of September 30, 2017, AGNC's cash and cash equivalents aggregated to $1.10 billion compared to $1.25 billion as of September 30, 2016.

Dividend and Share Buyback

In a separate press release on November 14, 2017, AGNC's Board of Directors declared a cash dividend of $0.18 per share of common stock for the month of November 2017. The dividend is payable on December 08, 2017, to common stockholders of record as of November 30, 2017, with an ex-dividend date of November 29, 2017.

Stock Performance

On Wednesday, November 15, 2017, the stock closed the trading session at $19.63, slipping 1.55% from its previous closing price of $19.94. A total volume of 5.51 million shares have exchanged hands, which was higher than the 3-month average volume of 4.95 million shares. AGNC Investment's stock price advanced 1.82% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 8.27%. The stock is trading at a PE ratio of 4.84 and has a dividend yield of 11.00%. At Wednesday's closing price, the stock's net capitalization stands at $7.72 billion.

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SOURCE: Pro-Trader Daily