NYSE$DX

Dynex Capital Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported positive financial results driven by investment strategy and team skills, with a total economic return of 7.2% for common shareholders and strategic capital deployment.

Dynex Capital reported strong first-quarter results, driven by its investment strategy and team. The company generated a 7.2% total economic return for common shareholders and raised $128 million in common equity. The company also redeemed the remaining shares of Series B Preferred Stock.

  • Total economic return to common shareholders was 7.2%, including $0.39 in dividends and a $0.99 increase in book value per share.
  • Comprehensive income was $1.76 per common share, and net income was $4.20 per common share.
  • Core net operating income (non-GAAP) was $0.46 per common share.
  • Leverage, including TBA dollar roll positions, increased to 6.9x shareholders' equity.

Headline financials

Total Revenue

$23.3M

Previous: $125M-81.3%
EPS (adj)

$0.46

Previous: $0.51-9.8%
Free Cash Flow

$118M

Previous: -$98.5M+219.8%
Net Income

$118M

Previous: -$98.5M+219.8%
Operating Income

$19.9M

Previous: $121M-83.6%
Gross Profit

$23.3M

Previous: $125M-81.3%
Cash & Equivalents

$329M

Previous: $51.4M+539.8%
Total Assets

$2.9B

Previous: $5.37B-46.0%
Stock-Based Comp

$452K

No prior period

Revenue & EPS history

Dynex Capital · Revenue · Quarterly

$23.3M

Q1 2021-81.3%vs Q1 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Forward guidance

The company anticipates continued volatility in the macroeconomic environment, which will demand ongoing active management of mortgage portfolios. Dynex believes its track record demonstrates that it can thrive and deliver returns across wide-ranging investment environments.

Tailwinds

  • Positioned the company for long-term success by raising a total of $128 million in common equity.
  • Grew book value.
  • Leverage ratio remaining under 7.0x.
  • Positioned balance sheet to take advantage of accretive capital deployment opportunities.
  • Disciplined investment process remains focused on delivering long-term value to shareholders.

Headwinds

  • Anticipate continued volatility in the macroeconomic environment.
  • Demand ongoing active management of mortgage portfolios.
  • Decline in the fair value of the majority of the Company's investment portfolio.
  • Decline was partially buffered by spread tightening.
  • Dollar roll specialness declined relative to the prior quarter.

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 Q1 2021

Historical avgQ1 2021

-0.6%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+0.3%

Avg return

30 days after

41%

27 / 66 earnings

Positive

+13.5%

Q1 2022

Best reaction

-10.4%

Q2 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.7%+1.1%-5.5%
Q4 2025+0.0%-5.1%-4.5%
Q3 2025+0.2%+0.1%+0.2%
Q2 2025-0.5%-1.1%-0.8%
Q1 2025-1.8%+4.8%+3.1%
Q4 2024+1.2%+5.1%+10.5%
Q3 2024-1.3%-1.7%-1.7%
Q2 2024+1.0%-1.0%+0.3%
Q1 2024+1.0%+1.8%+5.0%
Q4 2023-1.5%-2.8%-4.3%
Q3 2023-4.7%-10.0%+6.8%
Q2 2023+5.9%+5.6%-1.4%
Q1 2023-1.0%+0.5%-8.3%
Q4 2022-3.8%-2.4%-13.8%
Q3 2022-2.1%+3.2%+11.0%
Q2 2022-0.5%+1.9%-4.4%
Q1 2022+13.5%+13.7%+12.9%
Q4 2021+0.8%+3.6%-3.5%
Q3 2021-1.5%-0.2%-3.3%
Q2 2021+2.0%-0.2%+1.8%
Q1 2021+2.9%+3.2%-0.1%
Q4 2020+3.6%-2.3%+2.0%
Q3 2020+5.2%+4.4%+12.0%
Q2 2020+1.0%-0.1%+4.6%
Q1 2020-3.2%-6.7%+6.6%
Q4 2019+5.1%+5.9%-2.4%
Q3 2019+5.6%+3.7%+9.2%
Q2 2019-3.7%-6.3%-16.8%
Q1 2019-1.5%-2.0%-9.8%
Q4 2018-2.6%-1.6%-1.6%
Q3 2018+0.0%+1.0%+1.9%
Q2 2018-2.7%-3.9%-2.7%
Q1 2018-1.5%+0.6%-1.5%
Q4 2017-0.6%+1.8%+1.3%
Q3 2017+0.3%-1.1%+2.3%
Q2 2017+3.2%+2.9%+4.0%
Q1 2017-5.9%-6.0%-5.7%
Q4 2016+1.3%+1.5%+3.3%
Q3 2016-4.2%-2.6%-2.5%
Q2 2016+2.1%+4.5%+7.3%
Q1 2016-5.3%
Q4 2015+2.9%
Q3 2015+3.3%
Q2 2015-10.4%
Q1 2015-2.4%
Q4 2014-0.4%
Q3 2014+1.0%
Q2 2014-1.7%
Q1 2014-0.5%
Q4 2013-2.4%
Q3 2013-3.5%
Q2 2013-10.2%
Q1 2013-0.2%
Q1 2010+0.3%
Q4 2012-0.8%
Q3 2012-0.9%
Q2 2012+1.8%
Q4 2011+1.8%
Q1 2011+1.5%
Q1 2012+0.7%
Q3 2010-0.6%
Q3 2011-0.6%
Q2 2011-5.8%
Q4 2010-5.8%
Q4 2009-5.8%
Q2 2010-5.8%

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