Invesco Mortgage Capital Inc Third Quarter Earnings Sneak Peek

Invesco Mortgage Capital Inc (NYSE:IVR) will unveil its latest earnings on Wednesday, October 31, 2012. Invesco Mortgage Capital is a real estate investment trust that acquires, finances and manages residential and commercial mortgage-backed securities and mortgage loans.

Invesco Mortgage Capital Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 65 cents per share, a decline of 17.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 68 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 65 cents during the last month. Analysts are projecting profit to rise by 16.8% compared to last year’s $2.72.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 2 cents, reporting profit of 68 cents per share against a mean estimate of net income of 66 cents. In the first quarter, the company exceeded forecasts by 7 cents with profit of 72 cents versus a mean estimate of net income of 65 cents.

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Stock Price Performance: Between August 1, 2012 and October 25, 2012, the stock price rose $1.67 (8.5%), from $19.63 to $21.30. The stock price saw one of its best stretches over the last year between January 13, 2012 and January 26, 2012, when shares rose for nine straight days, increasing 13.2% (+$1.85) over that span. It saw one of its worst periods between March 30, 2012 and April 10, 2012 when shares fell for seven straight days, dropping 5.8% (-$1.02) over that span.

A Look Back: In the second quarter, profit rose 8% to $78.8 million (68 cents a share) from $73 million (99 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 26.6% to $146.2 million from $115.5 million.

Wall St. Revenue Expectations: Analysts are projecting a decline of 2.9% in revenue from the year-earlier quarter to $85.3 million.

Key Stats:

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

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 91.8% in the fourth quarter of the last fiscal year and 59% in the first quarter before increasing again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with seven of 11 analysts surveyed giving that rating.

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

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