NYSE$AGM

Federal Agricultural Mortgage Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported outstanding business volume of $22.0 billion and double-digit earnings growth year-over-year.

Farmer Mac reported a strong third quarter in 2020, marked by a $1.3 billion increase in liquidity and lending capacity. Net income attributable to common stockholders grew by 29.5% to $18.7 million, or $1.73 per diluted common share, while core earnings, a non-GAAP measure, increased by 18.4% to $27.7 million, or $2.57 per diluted common share. The net interest income grew by $4.5 million year-over-year, reaching $44.7 million, and the net effective spread increased by 22.0% to $51.8 million.

  • Provided $1.3 billion in liquidity and lending capacity in Q3 2020.
  • Net income attributable to common stockholders grew 29.5% year-over-year to $18.7 million, or $1.73 per diluted common share.
  • Core earnings grew 18.4% year-over-year to $27.7 million, or $2.57 per diluted common share.
  • Net interest income grew $4.5 million year-over-year to $44.7 million.

Headline financials

Total Revenue

$47M

Previous: $36.7M+28.3%
EPS (adj)

$2.57

Previous: $2.17+18.4%
Net Interest Income (GAAP)

$44.7M

Previous: $40.1M+11.5%
Core Earnings

$27.7M

Previous: $23.4M+18.4%
Net Effective Spread (Non-GAAP)

$51.8M

Previous: $42.5M+21.9%
Free Cash Flow

$25.5M

Previous: $17.8M+42.9%
Net Income

$25.5M

Previous: $17.8M+42.9%
Operating Income

$37.5M

Previous: $31.3M+19.7%
Gross Profit

$42M

Previous: $36.1M+16.4%
Cash & Equivalents

$911M

Previous: $588M+54.9%
Total Assets

$24B

Previous: $21.3B+12.6%
Stock-Based Comp

$753K

Previous: $407K+85.0%

Revenue & EPS history

Farmer Mac · Revenue · Quarterly

$47M

Q3 2020+28.3%vs Q3 2019
Beat estimate in 4 of 16 quarters(25%)
ActualEstimate

Forward guidance

Management's expectations for Farmer Mac's future necessarily involve assumptions and estimates and the evaluation of risks and uncertainties. Various factors or events, both known and unknown, could cause Farmer Mac's actual results to differ materially from the expectations as expressed or implied by the forward-looking statements in this release.

Tailwinds

  • Farmer Mac's low cost of funds
  • Farmer Mac's low overhead costs
  • Farmer Mac's high operational efficiency
  • Increase access to credit
  • Reduce the cost of credit

Headwinds

  • The duration, spread, and severity of the COVID-19 pandemic
  • The actions taken to address the COVID-19 pandemic
  • The effects of the COVID-19 pandemic on the business operations of agricultural and rural borrowers, the capital markets, and Farmer Mac's business operations
  • Fluctuations in the fair value of assets held by Farmer Mac and its subsidiaries
  • The effect of economic conditions and geopolitics on agricultural mortgage or rural utilities lending, borrower repayment capacity, or collateral values, including fluctuations in interest rates, changes in U.S. trade policies, fluctuations in export demand for U.S. agricultural products, and volatility in commodity prices

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 2020

Historical avgQ3 2020

+0.5%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+1.5%

Avg return

30 days after

58%

38 / 65 earnings

Positive

+13.9%

Q3 2016

Best reaction

-14.5%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%+6.4%+6.9%
Q4 2025-14.5%-8.0%-19.4%
Q3 2025+4.6%+3.7%+11.3%
Q1 2025+4.6%+10.4%+8.4%
Q4 2024+6.3%+3.7%-2.1%
Q3 2024+5.0%+12.7%+17.2%
Q2 2024-9.5%-10.3%-3.2%
Q1 2024-10.8%-7.6%-9.5%
Q4 2023-5.0%-5.9%+1.6%
Q3 2023-3.8%-2.9%+2.5%
Q2 2023+4.7%+8.1%-0.3%
Q1 2023-4.9%-1.0%+15.7%
Q4 2022+4.2%+7.0%-7.5%
Q3 2022+1.7%+5.4%+3.0%
Q2 2022+2.2%+6.2%-1.4%
Q1 2022-3.8%-5.5%-4.3%
Q4 2021-5.8%-4.8%-10.5%
Q3 2021-3.7%-1.6%-6.8%
Q2 2021+3.6%+4.4%+6.7%
Q1 2021-5.6%-7.5%-7.5%
Q4 2020+1.3%+4.2%+18.9%
Q3 2020+9.3%+4.5%+16.7%
Q2 2020+8.7%+11.1%+7.3%
Q1 2020-9.3%-8.4%+10.7%
Q4 2019+4.9%+5.1%-20.8%
Q3 2019-4.7%-6.2%-5.5%
Q2 2019+1.3%-2.5%+6.6%
Q1 2019+4.4%+1.4%-11.6%
Q4 2018+10.7%+13.1%-5.3%
Q3 2018+0.5%-0.3%-16.0%
Q2 2018-12.5%-17.2%-15.8%
Q1 2018-0.7%+0.6%+3.0%
Q4 2017+3.9%+4.9%+5.4%
Q3 2017-0.7%+4.1%+5.2%
Q2 2017-2.1%-0.1%-4.4%
Q1 2017+12.1%+11.8%+18.4%
Q4 2016+10.0%+10.1%-0.7%
Q3 2016+13.9%+18.8%+38.5%
Q2 2016+4.5%+2.7%+5.7%
Q1 2016-8.1%
Q4 2015+11.2%
Q3 2015+0.7%
Q2 2015+0.5%
Q1 2015+1.9%
Q4 2014-11.3%
Q3 2014-3.6%
Q2 2014+12.5%
Q1 2014-12.4%
Q4 2013+0.7%
Q3 2013+0.5%
Q2 2013+7.1%
Q1 2013-1.4%
Q2 2012-0.8%
Q4 2012-0.8%
Q3 2012+2.9%
Q4 2011+2.9%
Q1 2011+2.9%
Q1 2012+2.9%
Q4 2009+3.9%
Q2 2011+3.9%
Q3 2011-7.4%
Q3 2010-7.4%
Q2 2010+7.4%
Q4 2010+7.4%
Q1 2010-8.6%

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