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Investments / The Ticker

American Capital beats estimates by $0.19

REIT reports earnings per share of $0.87 in 2Q14

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American Capital Agency (AGNC), a real estate investment trust, reported earnings per share of $0.87 for the second quarter of 2014, which beat street estimates by $0.19.

The company’s second quarter earnings were up from $0.71 in 1Q14.

Seeking Alpha rounds up the key points of American Capital’s 2Q earnings statement:

  • Net spread and dollar roll income of $0.87 per share compares $0.71 in Q1, and to the $0.65 dividend.
  • Book value per share of $26.26 up 7.2% from June 30 book value of $24.49. Today's close of $23.69 is a 9.8% discount to book. Dividend plus boost in book value translates to 9.9% economic ROE for Q2.
  • CPR of 9% up 200 basis points from Q1.
  • Net interest spread of 1.84% up 25 basis points from Q1.
  • Average "at risk" leverage of 7.1x vs. 7.2x in Q1.
  • CIO Kain takes a victory lap: "Our results this quarter were bolstered by several important strategic decisions ... Most important was our decision to maintain our leverage as we believed the supply and demand outlook for agency MBS was very positive despite the tapering of Fed purchases."

The company has a conference call scheduled for Tuesday at 11 a.m. eastern to discuss its earnings. 

Source: Seeking Alpha
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