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Annaly Capital Management, Inc. (NLY - Free Report) reported second-quarter earnings available for distribution (EAD) per average share of 68 cents, surpassing the Zacks Consensus Estimate of 66 cents. However, the figure declined from the 72 cents reported in the year-ago quarter.
Shares of Annaly have lost 2.1% since the release of its second-quarter 2024 results.
NLY’s average yield on interest-earning assets improved in the reported quarter. However, the company recorded a year-over-year decline in book value per share (BVPS) and the net interest margin.
Inside the Headlines
Net interest income (NII) was $53.6 million in the reported quarter. The Zacks Consensus Estimate was pegged at $318 million. In the prior-year quarter, the company reported negative $31.9 million in NII.
At the second-quarter end, Annaly had $93.67 billion of total assets, up 2.4% from the prior quarter.
In the reported quarter, the average yield on interest-earning assets (excluding premium amortization adjustment or PAA) was 5.14%, up from the prior-year quarter’s 4.22%. The average economic costs of interest-bearing liabilities were 3.9%, up from 2.77% in the prior-year quarter.
Net interest spread (excluding PAA) of 1.24% in the second quarter fell from 1.45% in the prior-year quarter. Also, the net interest margin (excluding PAA) was 1.58% compared with 1.66% in second-quarter 2023.
Annaly’s BVPS was $19.25 as of Jun 30, 2024, down 7.1% from $20.73 reported in the prior-year quarter. At the end of the reported quarter, the company’s economic capital ratio was 14.2%, down from 14.3% in the prior-year quarter.
In the second quarter, the weighted average actual constant prepayment rate was 7.4%, up from 7% in the year-ago quarter.
Economic leverage was 5.8X as of Jun 30, 2024, up from 5.6X sequentially and unchanged year over year. Annaly generated an annualized EAD return on average equity of 13.36% in the second quarter, which increased from the prior-year quarter’s 13.22%.
Annaly Capital Management Inc Price, Consensus and EPS Surprise
Performance & Earnings Release Date of Other REITs
Starwood Property Trust, Inc. (STWD - Free Report) is slated to post quarterly results on Aug 6.
Over the past month, the Zacks Consensus Estimate for STWD’s quarterly earnings has remained unchanged at 48 cents per share, indicating a decline of 2.04% from the prior-year quarter’s reported figure.
Apollo Commercial Real Estate Finance, Inc. (ARI - Free Report) is slated to post quarterly results on Aug 7.
Over the past month, the Zacks Consensus Estimate for ARI’s quarterly earnings has remained unchanged at 34 cents per share, indicating a significant increase from the prior-year quarter’s reported figure.
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Annaly (NLY) Q2 Earnings Surpass Estimates, Stock Dips 2.1%
Annaly Capital Management, Inc. (NLY - Free Report) reported second-quarter earnings available for distribution (EAD) per average share of 68 cents, surpassing the Zacks Consensus Estimate of 66 cents. However, the figure declined from the 72 cents reported in the year-ago quarter.
Shares of Annaly have lost 2.1% since the release of its second-quarter 2024 results.
NLY’s average yield on interest-earning assets improved in the reported quarter. However, the company recorded a year-over-year decline in book value per share (BVPS) and the net interest margin.
Inside the Headlines
Net interest income (NII) was $53.6 million in the reported quarter. The Zacks Consensus Estimate was pegged at $318 million. In the prior-year quarter, the company reported negative $31.9 million in NII.
At the second-quarter end, Annaly had $93.67 billion of total assets, up 2.4% from the prior quarter.
In the reported quarter, the average yield on interest-earning assets (excluding premium amortization adjustment or PAA) was 5.14%, up from the prior-year quarter’s 4.22%. The average economic costs of interest-bearing liabilities were 3.9%, up from 2.77% in the prior-year quarter.
Net interest spread (excluding PAA) of 1.24% in the second quarter fell from 1.45% in the prior-year quarter. Also, the net interest margin (excluding PAA) was 1.58% compared with 1.66% in second-quarter 2023.
Annaly’s BVPS was $19.25 as of Jun 30, 2024, down 7.1% from $20.73 reported in the prior-year quarter. At the end of the reported quarter, the company’s economic capital ratio was 14.2%, down from 14.3% in the prior-year quarter.
In the second quarter, the weighted average actual constant prepayment rate was 7.4%, up from 7% in the year-ago quarter.
Economic leverage was 5.8X as of Jun 30, 2024, up from 5.6X sequentially and unchanged year over year. Annaly generated an annualized EAD return on average equity of 13.36% in the second quarter, which increased from the prior-year quarter’s 13.22%.
Annaly Capital Management Inc Price, Consensus and EPS Surprise
Annaly Capital Management Inc price-consensus-eps-surprise-chart | Annaly Capital Management Inc Quote
NLY currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance & Earnings Release Date of Other REITs
Starwood Property Trust, Inc. (STWD - Free Report) is slated to post quarterly results on Aug 6.
Over the past month, the Zacks Consensus Estimate for STWD’s quarterly earnings has remained unchanged at 48 cents per share, indicating a decline of 2.04% from the prior-year quarter’s reported figure.
Apollo Commercial Real Estate Finance, Inc. (ARI - Free Report) is slated to post quarterly results on Aug 7.
Over the past month, the Zacks Consensus Estimate for ARI’s quarterly earnings has remained unchanged at 34 cents per share, indicating a significant increase from the prior-year quarter’s reported figure.