AGNC Investment Q4 Earnings Miss Estimates, Asset Yield Improves Y/Y

AGNC Investment Corp.’s AGNC fourth-quarter 2024 net spread and dollar roll income per common share (excluding estimated "catch-up" premium amortization benefit) of 37 cents missed the Zacks Consensus Estimate of 42 cents. Also, the bottom line declined from 60 cents in the year-ago quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Adjusted net interest and dollar roll income of $405 million moved down 18.5% from the year-ago quarter.The company reported a fourth-quarter comprehensive loss per common share of 11 cents against a comprehensive income of 1 cent per share in the year-ago quarter.In 2024, net spread and dollar roll income per common share of $1.88 per share missed the consensus estimate of $1.95. However, the metric fell from $2.61 in 2023. Adjusted net interest and dollar roll income was $1.8 billion, up 9% from 2023.Inside AGNC's HeadlinesNet interest income (NII) was $115 million against net interest expenses of $26 million in the prior-year quarter. The metric missed the Zacks Consensus Estimate by 23.7%.For 2024, NII was $18 million, which missed the Zacks Consensus Estimate of $314 billion. The metric compared favorably with $246 million of net interest expenses in 2023.AGNC Investment's average asset yield on its portfolio was 5.02% in the fourth quarter, up from 4.55% in the fourth quarter of 2023.The combined weighted average cost of funds, inclusive of interest rate swap, was 2.89% compared with 1.39% in the fourth quarter of 2023.The average net interest spread (excluding estimated "catch-up" premium amortization benefits) was 1.91%, down from 3.08% in the previous quarter.As of Dec. 31, 2024, AGNC’s average tangible net book value "at risk" leverage ratio was 7.2X, down from 7.4X from the prior-year quarter.In the fourth quarter, the company's investment portfolio bore an average actual constant prepayment rate of 9.6%, up from 6.2% in the year-ago quarter.As of Dec. 31, 2024, tangible net book value per common share (BVPS) was $8.41, down 3.3% on a year-over-year basis.The economic return on tangible common equity was negative 0.6% against 12.1% in the year-ago quarter. This included a dividend per share of 36 cents and a decrease of 41 cents in tangible net BVPS.As of Dec. 31, 2024, the company’s investment portfolio aggregated $73.3 billion. This included $65.5 billion of Agency mortgage-backed securities and $6.9 billion of net forward purchases of Agency MBS in the to-be-announced market, as well as $0.9 billion of credit risk transfer, and non-Agency securities and other mortgage credit investments.AGNC Investment’s Balance Sheet PositionAs of Dec. 31, 2024, AGNC’s cash and cash equivalents totaled $505 million, down 0.4% from the prior quarter.AGNC's Dividend UpdateIn the fourth quarter, AGNC Investment announced a dividend of 12 cents per share each for October, November and December, totaling $0.36 per share for the quarter. Management declared $14 billion in common stock dividends or $48.64 per share since its initial public offering in May 2008 through the fourth quarter of 2024.Our View on AGNC InvestmentAGNC’s fourth-quarter results benefited from an increase in asset yields and higher net interest spread. The company’s strategic portfolio repositioning moves cushion it from higher interest rates and prepayments. However, lower tangible book value per share was concerning.AGNC Investment Corp. Price, Consensus and EPS Surprise  AGNC Investment Corp. price-consensus-eps-surprise-chart | AGNC Investment Corp. QuoteAGNC Investment currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Upcoming Release Dates of Other REITsAnnaly Capital Management, Inc. NLY is slated to report fourth-quarter 2024 results on Jan. 29.Over the past month, the Zacks Consensus Estimate for NLY’s quarterly earnings has been unchanged at 67 cents per share over the past seven days. This indicates a 1.5% decline from the prior-year reported figure.Starwood Property Trust, Inc. STWD is slated to post quarterly results on Feb. 27.Over the past month, the Zacks Consensus Estimate for STWD’s quarterly earnings has been unchanged at 46 cents per share over the past seven days. This indicates a decline of 20.7% from the prior-year quarter’s reported figure.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AGNC Investment Corp. (AGNC): Free Stock Analysis Report STARWOOD PROPERTY TRUST, INC. (STWD): Free Stock Analysis Report Annaly Capital Management Inc (NLY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks