NASDAQ$AGNC

AGNC Investment Corp · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Announced financial results, demonstrating a strong economic return driven by book value growth and a stable monthly dividend.

AGNC Investment Corp. reported a strong economic return of 9.3% for Q3 2024, driven by significant book value growth and a stable monthly dividend of $0.12 per common share. The company's tangible net book value per common share increased by 5.0% to $8.82. AGNC issued $781 million in common stock through its ATM program, providing accretion for stockholders.

  • Comprehensive income per common share was $0.63, including $0.39 net income and $0.24 other comprehensive income.
  • Net spread and dollar roll income per common share was $0.43, excluding $(0.03) per common share of estimated 'catch-up' premium amortization cost.
  • Tangible net book value per common share increased to $8.82, up $0.42 per share or 5.0% from the previous quarter.
  • The company reported a 9.3% economic return on tangible common equity for the quarter.

Headline financials

Total Revenue

-$64M

Previous: -$53M-20.8%
EPS

$0.39

Previous: $0.65-40.0%
Economic Return on Equity

9.3%

No prior period
At-Risk Leverage Ratio

7.2

No prior period
Capital Expenditures

$0.00

No prior period
Free Cash Flow

$346M

Previous: -$392M+188.3%
Net Income

$346M

Previous: -$392M+188.3%
Operating Income

-$94M

Previous: -$76M-23.7%
Gross Profit

-$64M

Previous: -$53M-20.8%
Cash & Equivalents

$507M

Previous: $493M+2.8%
Total Assets

$89.6B

Previous: $70B+28.0%
Stock-Based Comp

$5M

Previous: $3M+66.7%

Revenue & EPS history

AGNC · Revenue · Quarterly

-$64M

Q3 2024+20.8%vs Q3 2023
Beat estimate in 2 of 15 quarters(13%)
ActualEstimate

Forward guidance

The Fed is expected to return the federal funds rate to a neutral level over the next 12 to 24 months, which would typically be accompanied by a steepening of the yield curve and growing demand for high quality fixed income instruments such as Agency MBS. Although the path of financial markets is never perfectly linear and periods of volatility are inevitable, the outlook for Agency MBS today is decidedly better than it was in 2022 and 2023 as a result of the positive direction of the broader economy, the accommodative Fed monetary policy stance, and the stability of Agency MBS spreads at these historically favorable levels.

Tailwinds

  • Accommodative Fed monetary policy stance
  • Stability of Agency MBS spreads at historically favorable levels
  • Potential for a steepening yield curve
  • Growing demand for high quality fixed income instruments
  • Positive direction of the broader economy

Headwinds

  • Path of financial markets is never perfectly linear
  • Periods of volatility are inevitable
  • Changes in monetary policy and other factors that affect interest rates
  • Changes in MBS spreads to benchmark interest rates
  • Legislative and regulatory changes that could adversely affect the business of the Company

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.3%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+0.8%

Avg return

30 days after

63%

41 / 65 earnings

Positive

+9.2%

Q1 2022

Best reaction

-9.1%

Q3 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.4%+2.3%-4.8%
Q4 2025+3.2%-3.4%-3.8%
Q3 2025-0.5%+1.0%-0.3%
Q2 2025+0.2%+1.0%+5.9%
Q1 2025+3.6%+8.5%+8.0%
Q4 2024+0.8%+1.8%+6.4%
Q3 2024-5.6%-6.3%-9.0%
Q2 2024+1.0%-1.7%-0.7%
Q1 2024+2.4%+2.0%+6.8%
Q4 2023-0.4%+0.2%-3.2%
Q3 2023+5.4%+19.3%+27.9%
Q2 2023+3.0%+2.3%-4.2%
Q1 2023-3.0%-1.4%-11.7%
Q4 2022-0.7%+2.4%-9.3%
Q3 2022+2.2%+5.7%+27.3%
Q2 2022-0.2%+3.8%+2.1%
Q1 2022+9.2%+13.0%+10.8%
Q4 2021-0.5%-3.5%-10.6%
Q3 2021-0.2%-3.8%-3.1%
Q2 2021+0.4%-1.6%+2.0%
Q1 2021+1.6%+2.6%+6.4%
Q4 2020+0.1%-3.3%+2.7%
Q3 2020+0.4%-1.6%+10.3%
Q2 2020+0.4%+0.6%+3.9%
Q1 2020-2.1%-2.2%+2.0%
Q4 2019+0.4%+1.2%-7.4%
Q3 2019+2.4%+2.2%+4.0%
Q2 2019-1.9%-0.6%-10.8%
Q1 2019-2.0%-2.5%-6.2%
Q4 2018-1.1%-1.5%-3.0%
Q3 2018+2.7%+2.7%-1.0%
Q2 2018+1.1%+2.3%+0.7%
Q1 2018+1.2%+0.3%+1.2%
Q4 2017-1.5%-4.5%-4.9%
Q3 2017-5.0%-6.1%-6.4%
Q2 2017+0.6%+0.6%+2.8%
Q1 2017+2.3%+1.4%-1.6%
Q4 2016+0.9%+2.8%+4.8%
Q3 2016+3.6%+1.8%-2.9%
Q2 2016-0.3%-0.1%+0.2%
Q1 2016-1.8%
Q4 2015+2.1%
Q3 2015-5.4%
Q2 2015+1.7%
Q1 2015-3.6%
Q4 2014+0.8%
Q3 2014+0.4%
Q2 2014-0.4%
Q1 2014-1.6%
Q4 2013+1.8%
Q3 2013-9.1%
Q2 2013+6.7%
Q1 2013-7.1%
Q4 2012-3.4%
Q3 2012+0.3%
Q2 2012+1.0%
Q1 2012+1.9%
Q4 2011+0.3%
Q3 2011+2.1%
Q2 2011+6.3%
Q1 2011+0.4%
Q4 2010+0.6%
Q3 2010-0.8%
Q2 2010+2.2%
Q1 2010+1.7%

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