Invesco Mortgage Capital Inc. Earnings Cheat Sheet: Profit Rises Year Over Year

Invesco Mortgage Capital Inc. (NASDAQ:IVR) reported its results for the second quarter. Invesco Mortgage Capital is a real estate investment trust that acquires, finances and manages residential and commercial mortgage-backed securities and mortgage loans.

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Invesco Mortgage Capital Earnings Cheat Sheet for the Second Quarter

Results: Net income for Invesco Mortgage Capital Inc. rose to $73 million (99 cents per share) vs. $20.8 million (91 cents per share) in the same quarter a year earlier. This is a more than threefold rise from the year earlier quarter.

Actual vs. Wall St. Expectations: IVR fell in line with the mean analyst estimate of 99 cents per share.

Quoting Management: “We are pleased with our results for the second quarter,” said Richard King, President and Chief Executive Officer. “During the quarter we were able to generate $0.99 in earnings per share while deploying the proceeds from our strategic capital raises. The current environment presents attractive opportunities to purchase our target assets, allowing us to efficiently invest the new capital. In the second quarter we saw a negative impact to our book value from the decline in rates on our interest rate swap hedges. We are pleased with the prepayment and credit performance of our assets, and believe our strategy of protecting net interest income for the long run is the appropriate approach in today’s environment.”

Competitors to Watch: Two Harbors Investment Corp (AMEX:TWO), Hatteras Financial Corp. (NYSE:HTS), Capstead Mortgage Corp. (NYSE:CMO), Annaly Capital Management, Inc. (NYSE:NLY), Eastern Light Capital, Inc. (AMEX:ELC), Newcastle Investment Corp. (NYSE:NCT), Cypress Sharpridge Investments, Inc. (NYSE:CYS), Crexus Investment Corp (NYSE:CXS), Chimera Investment Corp. (NYSE:CIM), and Apollo Commercial Real Est. Finance Inc (NYSE:ARI).

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(Source: Xignite Financials)