American Capital Mortgage Investment Earnings: Here’s Why the Stock is Up Now

American Capital Mortgage Investment Corp (NASDAQ:MTGE) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.96%.

American Capital Mortgage Investment Corp Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.94 in the quarter versus EPS of $0.80 in the year-earlier quarter.

Revenue: Was the same at $54.8 million as the year-earlier quarter.

Actual vs. Wall St. Expectations: American Capital Mortgage Investment Corp reported adjusted EPS loss of $0.94 per share. By that measure, the company missed the mean analyst estimate of $0.77. It beat the average revenue estimate of $53.98 million.

Quoting Management: Malon Wilkus, Chair and Chief Executive Officer commented, “Despite the significant market volatility during the first half of this year, we have been able to produce a strong economic return, representing the sum of the percentage change of our book value plus dividend yield, of 18.3% over the last twelve months. While the timing around any potential Fed exit is still unclear, we do believe that the mortgage market has begun its transition towards a model with more support from private capital. While this transition will undoubtedly be both complex and turbulent, we feel strongly about the long term opportunities available to MTGE and look forward to capitalizing on those opportunities as they arise.”

Key Stats (on next page)…

EPS decreased to $-0.94 in the quarter versus EPS of $0.75 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.86 to a profit $0.75. For the current year, the average estimate has moved down from a profit of $3.44 to a profit of $2.91 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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