NYSE$DX

Dynex Capital Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Announced second quarter 2022 results.

Dynex Capital, Inc. reported a comprehensive loss of $(0.85) per common share and net income of $0.70 per common share for the second quarter of 2022. The company's earnings available for distribution (EAD) to common shareholders was $0.40 per common share.

  • Comprehensive loss of $(0.85) per common share and net income of $0.70 per common share
  • Negative total economic return ("TER") of $(1.06) per common share, or (5.8)% of beginning book value
  • Earnings available for distribution ("EAD") to common shareholders, a non-GAAP measure, of $0.40 per common share
  • Net interest spread of 1.50% and adjusted net interest spread, a non-GAAP measure, of 1.84%

Headline financials

Total Revenue

-$215K

Previous: $12.1M-101.8%
EPS (adj)

$0.40

Previous: $0.51-21.6%
Net Interest Spread

1.5%

Previous: 1.9%-19.8%
Economic Net Interest Spread

1.8%

Previous: 1.9%-5.6%
Free Cash Flow

$29.3M

No prior period
Net Income

$29.3M

Previous: -$43.8M+167.0%
Operating Income

-$5.44M

No prior period
Gross Profit

-$215K

No prior period
Cash & Equivalents

$326M

Previous: $349M-6.8%
Total Assets

$3.2B

Previous: $3.47B-7.8%
Stock-Based Comp

$1.03M

Previous: $543K+89.1%

Revenue & EPS history

Dynex Capital · Revenue · Quarterly

-$215K

Q2 2022-101.8%vs Q2 2021
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Forward guidance

The company is in a strong position entering the second half of the year, which they believe will enable them to take advantage of the attractive opportunities they are currently seeing in the mortgage market.

Tailwinds

  • Focus on capital preservation
  • Strong position entering the second half of the year
  • Ample liquidity
  • Well-protected book value
  • Experienced management team

Headwinds

  • Volatility and disruption in national and international financial markets
  • Adverse effects of the ongoing novel coronavirus (COVID-19) pandemic and any governmental or societal responses thereto, or other unusual and infrequently occurring events
  • Changes in economic conditions, including an increased rate of 9 9 9 inflation
  • Changes in interest rates and interest rate spreads, including the repricing of interest-earning assets and interest-bearing liabilities
  • Uncertainty concerning the long-term fiscal health and stability of the United States

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 Q2 2022

Historical avgQ2 2022

-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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