- AGNC Investment’s net interest income for the third quarter was $148 million, an 8.6% decrease from the previous quarter and below the estimated $307.3 million.
- Interest income increased by 19% year-over-year to $903 million, but fell short of the expected $944.4 million.
- Interest expense decreased by 7.9% year-over-year to $755 million, higher than the estimated $635.1 million.
- Net spread and dollar roll income per share, excluding items, was $0.35, missing the estimated $0.39.
- Tangible book value per share decreased to $8.28 from $8.82 year-over-year, although higher than the estimate of $8.01.
- Economic Return on Tangible Common Equity rose to 10.6% compared to 9.3% year-over-year, exceeding the estimated 9.73%.
- The average asset yield, including the TBA position and excluding “catch-up” premium amortization, was 4.95%, slightly above the estimate of 4.94% and higher than last year’s 4.73%.
- Average total cost of funds increased to 3.17% from last year’s 2.52%, above the expected 2.98%.
- The annualized net interest spread, considering the TBA position and interest rate swaps and excluding “catch-up” premium amortization, was 1.78%, below the estimated 1.88% and last year’s 2.21%.
- Cash and cash equivalents decreased by 31% quarter-over-quarter to $450 million, missing the expected $585.5 million.
- Analyst ratings include 9 buys and 6 holds, with no sell recommendations.
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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
AGNC Investment Corp. is viewed favorably by analysts based on its Smartkarma Smart Scores. With a solid score of 5 in Dividend and high scores in Value, Growth, and Momentum, the company is well-positioned for long-term success. The company’s focus on residential mortgage-backed securities with government guarantees provides stability and attractiveness for investors.
Despite a slightly lower Resilience score of 3, AGNC Investment Corp. maintains a strong overall outlook. As an internally-managed real estate investment trust, the company serves customers in the United States, offering a reliable investment option in the housing market. Investors looking for a combination of dividends, growth potential, and value may find AGNC Investment Corp. to be a promising long-term investment.
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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