Dynex Capital, Inc. Third Quarter Earnings Sneak Peek

Dynex Capital, Inc. (NYSE:DX) will unveil its latest earnings on Thursday, November 1, 2012. Dynex Capital is a real estate investment trust that invests in mortgage loans and securities on a leveraged basis.

Dynex Capital, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 33 cents per share, a rise of 725% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 35 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 33 cents during the last month. For the year, analysts are projecting profit of $1.33 per share, a rise of 29.1% from last year.

Past Earnings Performance: Last quarter, the company saw net income of 35 cents per share versus a mean estimate of profit of 35 cents per share. This comes after two consecutive quarters of exceeding expectations.

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A Look Back: In the second quarter, profit rose 38.6% to $18.8 million (35 cents a share) from $13.6 million (34 cents a share) the year earlier, meeting analyst expectations. Revenue rose 35.8% to $30 million from $22.1 million.

Stock Price Performance: Between September 28, 2012 and October 26, 2012, the stock price dropped $1.02 (-9.5%), from $10.75 to $9.73. The stock price saw one of its best stretches over the last year between February 17, 2012 and February 28, 2012, when shares rose for seven straight days, increasing 5% (+46 cents) over that span. It saw one of its worst periods between October 2, 2012 and October 10, 2012 when shares fell for seven straight days, dropping 9% (-98 cents) over that span.

Analyst Ratings: There are three out of five analysts surveyed (60%) rating Dynex Capital a buy.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 52.6% over the last four quarters.

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 49.3% in the fourth quarter of the last fiscal year and 60.3% in the first quarter before increasing again in the second quarter.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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