AGNC Funding (AGNC) got here out with quarterly earnings of $0.58 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.49 per share a yr in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of 26.09%. 1 / 4 in the past, it was anticipated that this actual property funding belief would put up earnings of $0.56 per share when it really produced earnings of $0.57, delivering a shock of 1.79%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates 4 occasions.
AGNC Funding, which belongs to the Zacks REIT and Fairness Belief business, posted revenues of $372 million for the quarter ended June 2020, surpassing the Zacks Consensus Estimate by 12.42%. This compares to year-ago revenues of $123 million. The corporate has topped consensus income estimates simply as soon as during the last 4 quarters.
The sustainability of the inventory’s instant worth motion based mostly on the recently-released numbers and future earnings expectations will largely rely upon administration’s commentary on the earnings name.
AGNC Funding shares have misplaced about 23.5% because the starting of the yr versus the S&P 500’s decline of -0.5%.
What’s Subsequent for AGNC Funding?
Whereas AGNC Funding has underperformed the market to this point this yr, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There aren’t any simple solutions to this key query, however one dependable measure that may assist buyers handle that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified these days.
Empirical analysis exhibits a robust correlation between near-term inventory actions and tendencies in earnings estimate revisions. Buyers can observe such revisions by themselves or depend on a tried-and-tested score device just like the Zacks Rank, which has a formidable observe file of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for AGNC Funding was blended. Whereas the magnitude and route of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out according to the market within the close to future. You’ll be able to see the whole record of immediately’s Zacks #1 Rank (Robust Purchase) shares right here.
Will probably be fascinating to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $0.46 on $340.10 million in revenues for the approaching quarter and $1.95 on $1.37 billion in revenues for the present fiscal yr.
Buyers ought to be conscious of the truth that the outlook for the business can have a cloth affect on the efficiency of the inventory as nicely. By way of the Zacks Trade Rank, REIT and Fairness Belief is presently within the backside 19% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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AGNC Investment Corp. (AGNC) : Free Stock Analysis Report
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