AGNC reports wider Q2 net loss per share

Overview

• AGNC Q2 comprehensive loss per share $0.13, flat yoy

• AGNC Q2 net loss per common share at $0.17 vs net loss per common share of $0.11 yoy

• Tangible net book value per share decreased 5.3% to $7.81

• Economic return on tangible equity -1.0%, driven by dividends and book value decline

Outlook

• AGNC anticipates favorable conditions for levered and hedged Agency MBS investments

• Company expects increased bank participation in Agency MBS markets

• AGNC sees mortgage spreads to benchmark rates as favorable

Result Drivers

• INTEREST RATE VOLATILITY - AGNC faced increased interest rate volatility, impacting investor sentiment and economic return, per CEO Peter Federico

• MORTGAGE SPREADS - Wider mortgage spreads to benchmark rates contributed to a decline in tangible net book value, according to CFO Bernice Bell

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for AGNC Investment Corp is $9.90, about 6.6% above its July 18 closing price of $9.25

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nPn9py2zpa