Apollo Residential Mortgage Earnings: Here’s Why the Stock is Up Now

Apollo Residential Mortgage Inc (NYSE:AMTG) 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 up 0.18%.

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Apollo Residential Mortgage Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 5.13% to $0.74 in the quarter versus EPS of $0.78 in the year-earlier quarter.

Revenue: Rose 34.75% to $32.03 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Apollo Residential Mortgage Inc reported adjusted EPS income of $0.74 per share. By that measure, the company beat the mean analyst estimate of $0.68. It beat the average revenue estimate of $26.42 million.

Quoting Management: “AMTG had another solid quarter of financial and operating results, against a backdrop of volatility in the mortgage market,” said Michael Commaroto, Chief Executive Officer of AMTG. “The Company’s non-Agency RMBS portfolio continued to perform well, bolstered by the positive trends experienced in the housing market. As we optimized our portfolio throughout the quarter, we sold $589.5 million of Agency and non-Agency RMBS and generated net gains of $15.8 million, or $0.61 per common share. In addition, capitalizing on the Company’s experience in the credit market, AMTG broadened its investment portfolio during the quarter through the completion of the Company’s first purchase and securitization of a residential whole loan pool.”

Key Stats (on next page)…

Revenue decreased 52.15% from $66.94 million in the previous quarter. EPS increased 13.85% from $0.65 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 $0.71 to a profit $0.69. For the current year, the average estimate has moved down from a profit of $2.89 to a profit of $2.77 over the last ninety days.

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