- Fannie Mae‘s second quarter net income was $3.32 billion, falling short of the $3.98 billion estimate from analysts.
- Net interest income totaled $7.16 billion, a decrease of 1.6% compared to the same quarter last year.
- Comprehensive net income also saw a decline, down 26% year-over-year, amounting to $3.32 billion.
- The company recorded net revenue of $7.24 billion, which is a 1.3% decrease from the previous year.
- Fannie Mae has total mortgage loans at a staggering $4.12 trillion.
- Cash and cash equivalents for the company stand at $38.23 billion.
- An investment loss of $8 million was reported, which is an 87% reduction from last year’s loss.
- Fair value gains amounted to $211 million, experiencing a 53% decrease compared to the previous year.
- There was a net loss attributable to common stockholders of $7 million, contrasting with a $7 million profit from the prior year.
- Chair Bill Pulte reaffirmed the company’s commitment to operate as a for-profit enterprise to lower housing costs and deliver value to Americans.
- Analyst recommendations include 0 buys, 0 holds, and 2 sells for Fannie Mae.
A look at Fannie Mae Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.2 |
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
Analysts utilizing Smartkarma Smart Scores indicate a positive long-term outlook for Fannie Mae. With a strong Momentum score of 5, the company is showing promising signs of growth and market confidence. This is further supported by a Resilience score of 3, suggesting that Fannie Mae is well-positioned to weather market uncertainties.
Although Fannie Mae scores low in Value at 0 and Dividend at 1, the Growth score of 2 hints at potential future expansion and development. As a key player in the facilitation of housing ownership for low to middle-income Americans, Fannie Mae‘s unique position in the market aligns with its mission and underscores its relevance in the housing finance sector.
(summary)
Fannie Mae buys and holds mortgages, and issues and sells guaranteed mortgage-backed securities to facilitate housing ownership for low to middle-income Americans. The Company was chartered by the United States Congress, but went public in 1970.
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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