NYSE$AGM

Federal Agricultural Mortgage Corporation · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Farmer Mac's Q4 2019 earnings reflected strong growth in net income and core earnings, driven by increased business volume and net interest income.

Farmer Mac reported a strong fourth quarter in 2019, with net income attributable to common stockholders increasing by 49% year-over-year to $29.1 million, or $2.70 per diluted common share. Core earnings also grew by 20% year-over-year to $24.5 million, or $2.27 per diluted common share. The company's net interest income increased by 17% year-over-year to $49.4 million, and net effective spread rose by 18% to $46.0 million.

  • Net income attributable to common stockholders grew 49% year-over-year to $29.1 million, or $2.70 per diluted common share.
  • Core earnings, a non-GAAP measure, grew 20% year-over-year to $24.5 million, or $2.27 per diluted common share.
  • Net interest income grew 17% year-over-year to $49.4 million.
  • Net effective spread, a non-GAAP measure, increased 18% from the prior-year period to $46.0 million.

Headline financials

Total Revenue

$51.5M

Previous: $44M+17.0%
EPS (adj)

$2.27

Previous: $1.90+19.5%
Net Interest Income (GAAP)

$49.4M

Previous: $42.2M+16.9%
Core Earnings

$24.5M

Previous: $20.5M+19.7%
Net Effective Spread (Non-GAAP)

$46M

Previous: $38.9M+18.4%
Net Income

$32.5M

Previous: $19.6M+66.1%
Operating Income

$41.2M

No prior period
Cash & Equivalents

$604M

Previous: $425M+42.1%
Total Assets

$21.7B

Previous: $18.7B+16.1%
Stock-Based Comp

$594K

Previous: $635K-6.5%

Revenue & EPS history

Farmer Mac · Revenue · Quarterly

$51.5M

Q4 2019+17%vs Q4 2018
Beat estimate in 2 of 16 quarters(13%)
ActualEstimate

Forward guidance

Farmer Mac is in excellent financial condition and strategically focuses on expanding business volume and market share through innovative solutions to acquire and retain customers. The company believes it will be well-positioned to further expand its bottom line and successfully continue to execute upon its mission while delivering value for its shareholders.

Tailwinds

  • Expanding business volume
  • Increasing market share
  • Utilizing new, innovative solutions
  • Acquiring and retaining customers
  • Delivering value for shareholders

Headwinds

  • Availability of debt and equity financing
  • Legislative or regulatory developments
  • Fluctuations in the fair value of assets
  • Economic conditions and geopolitics
  • Exposure to interest rate risk

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 Q4 2019

Historical avgQ4 2019

+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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