Mortgage finance REIT Annaly Capital Management (NYSE: NLY) will be announcing earnings results this Wednesday afternoon. Here’s what to expect.
Annaly Capital Management missed analysts’ revenue expectations by 61.1% last quarter, reporting revenues of $186.6 million, down 62.9% year on year. It was a softer quarter for the company, with EPS in line with analysts’ estimates.
Is Annaly Capital Management a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Annaly Capital Management’s revenue to grow 796% year on year to $429.9 million, a reversal from the 78% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.71 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Annaly Capital Management has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Annaly Capital Management’s peers in the banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AGNC Investment’s revenues decreased 367% year on year, missing analysts’ expectations by 141%, and Citigroup reported revenues up 8%, topping estimates by 3.5%. Citigroup traded up 2.9% following the results.
Read our full analysis of AGNC Investment’s results here and Citigroup’s results here.
There has been positive sentiment among investors in the banks segment, with share prices up 7.8% on average over the last month. Annaly Capital Management is up 4.3% during the same time and is heading into earnings with an average analyst price target of $20.70 (compared to the current share price of $19.96).
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