Invesco Mortgage Capital Earnings: Here’s Why Investors Don’t Like These Results

Invesco Mortgage Capital Inc. (NYSE:IVR) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.97%.

Invesco Mortgage Capital Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 13.24% to $0.59 in the quarter versus EPS of $0.68 in the year-earlier quarter.

Revenue: Decreased 34.65% to $95.56 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Invesco Mortgage Capital Inc. reported adjusted EPS income of $0.59 per share. By that measure, the company missed the mean analyst estimate of $0.62. It missed the average revenue estimate of $95.65 million.

Quoting Management: “For the second quarter, we earned $1.03 per share on a GAAP basis and core earnings of $0.59 per share, which allowed us to maintain our $0.65 dividend,” said Richard King, President and CEO. “We believe our diversified portfolio and hedging strategy helped reduce the impact that rising interest rates had on our book value. We continue to position our portfolio for a rising rate environment and took additional steps last quarter to increase our hedging, reduce exposure to Agency RMBS and add credit assets.”

Key Stats (on next page)…

EPS decreased 7.81% from $0.64 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 $0.66 to a profit $0.62. For the current year, the average estimate has moved down from a profit of $2.62 to a profit of $2.49 over the last ninety days.

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