- AGNC Investment’s net interest income for the second quarter was $162 million, slightly increasing by 1.9% quarter-over-quarter but missing the estimated $289.1 million.
- Interest income reached $830 million, an increase of 19% year-over-year, although it fell short of the estimated $888.7 million.
- Interest expenses decreased by 4.3% year-over-year to $668 million, exceeding the estimated $651.5 million.
- Net spread and dollar roll income per share excluding certain items was 38 cents, underperforming the estimate of 41 cents.
- Tangible book value per share declined to $7.81 from $8.40 year-over-year, missing the estimate of $8.32.
- Economic return on tangible common equity was -1% compared to -0.9% the previous year, and below the estimated +0.84%.
- The average asset yield, including TBA position and excluding “catch-up” premium amortization, was 4.87%, meeting the estimate and up from 4.69% year-over-year.
- The average total cost of funds rose to 2.86% from 2% year-over-year, aligning with estimates.
- The annualized net interest spread, inclusive of the TBA position and interest rate swaps and excluding “catch-up” premium amortization, decreased to 2.01% from 2.69% year-over-year.
- Cash and cash equivalents increased by 44% quarter-over-quarter to $656 million, yet missed the estimated $750.6 million.
- AGNC’s management noted significant financial market volatility due to governmental policy risks and commended their risk management and strategic asset additions.
- The economic return for the second quarter was negatively impacted by wider mortgage spreads and a decline in tangible net book value, resulting in a -1% return.
- There were 9 buy ratings, 6 hold ratings, and no sell ratings from analysts for AGNC.
A look at American Capital Agency Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
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
Based on the Smartkarma Smart Scores, American Capital Agency Corp shows promising long-term prospects. With top scores in Dividend and strong marks in Value, Growth, and Momentum, the company demonstrates solid fundamentals and growth potential. However, its Resilience score is slightly lower, indicating some vulnerability to market fluctuations. AGNC Investment Corp, as an internally-managed real estate investment trust, focuses on residential mortgage-backed securities guaranteed by the US government and agency. This strategy positions the company well in the market, especially for investors seeking reliable dividends and growth opportunities.
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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