Annaly Capital Management Earnings: Here’s Why Investors are Not Excited Now

Annaly Capital Management, Inc. (NYSE:NLY) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.17%.

Annaly Capital Management, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 2.17% to $0.47 in the quarter versus EPS of $0.46 in the year-earlier quarter.

Revenue: Rose 204.05% to $460.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Annaly Capital Management, Inc. reported adjusted EPS income of $0.47 per share. By that measure, the company beat the mean analyst estimate of $0.32. It beat the average revenue estimate of $415.34 million.

Quoting Management: Wellington J. Denahan, Chairman and Chief Executive Officer of Annaly, commented on the Company’s results. “While the resulting sell-off in the bond market put pressure on asset values during the 2nd quarter, I believe that our focus on prudent risk management and the evolution of our capital allocation strategy has helped protect our portfolio and positions Annaly to take advantage of current market opportunities. We are prepared to be opportunistic given our low leverage, strong liquidity and sizeable capital production.”

Key Stats (on next page)…

Revenue decreased 58.34% from $1.11 billion in the previous quarter. EPS increased 0% from $0.47 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 $0.36 to a profit $0.35. For the current year, the average estimate has moved up from a profit of $1.4 to a profit of $1.48 over the last ninety days.

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