- AGNC Investment reported a net interest income of $159 million for the first quarter, which is a 38% increase from the previous quarter but misses the estimated $347.2 million.
- Interest income for the quarter came in at $846 million, up 32% from the previous year, but slightly below the estimated $852.2 million.
- Interest expenses rose to $687 million, marking a 2.2% year-over-year increase, above the projected $650.4 million.
- Net spread and dollar roll income per share, excluding certain items, was 44 cents, surpassing estimates of 41 cents.
- The tangible book value per share decreased to $8.25 from $8.84 year-over-year, missing the projected $8.46.
- Earnings and economic return on tangible common equity was 2.4%, a decline from last year’s 5.7%, and below the expected 6.65%.
- Average asset yield, including TBA positions, was 4.87%, close to the estimated 4.89% and higher than the previous year’s 4.56%.
- Average total cost of funds increased to 2.75% from 1.58% last year, aligning closely with the estimated 2.76%.
- The annualized net interest spread was 2.12%, down from 2.98% the previous year.
- Cash and cash equivalents decreased to $455 million, a 9.9% decline from the previous quarter and below the estimated $602.4 million.
- Despite market declines, AGNC’s total stock return, including dividends reinvested, achieved a 7.8% return for the quarter.
- The widening of Agency MBS spreads led to a modest decline in tangible book value; however, anticipated portfolio returns have increased in line with wider spread environments.
- The economic return on tangible common equity included $0.36 in dividends per share, offset by a $0.16 decline in tangible net book value per share due to increased mortgage spreads.
- The company has 9 buy recommendations, 6 hold recommendations, and no sell recommendations from analysts.
A look at American Capital Agency Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
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AGNC Investment Corp., a real estate investment trust, has received positive Smartkarma Smart Scores in various categories. With a strong Dividend score of 5, the company is recognized for its consistent dividend payouts, which may attract income-seeking investors. Additionally, a Value score of 4 indicates that the company’s stock may be trading at an attractive valuation compared to its peers. This suggests a potential for long-term growth.
While the Growth and Resilience scores are moderate at 3, the company shows promising Momentum with a score of 4. This suggests that American Capital Agency Corp. may have good short-term price performance. Overall, the combination of these scores indicates a favorable long-term outlook for AGNC Investment Corp., making it an interesting option for investors seeking both income and potential value appreciation in the real estate sector in the United States.
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Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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