NYSE$DX

Dynex Capital Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported solid total economic return driven by strategic investment and hedging.

Dynex Capital reported a strong third quarter with an 11.7% total economic return driven by increased book value per common share. The company benefited from improved asset valuations and a favorable funding environment.

  • Comprehensive income of $1.92 per common share and net income of $1.62 per common share.
  • Quarterly total economic return to common shareholders of 11.7%.
  • Core net operating income, a non-GAAP measure, of $0.61 per common share.
  • Book value per common share of $18.25 as of September 30, 2020 compared to $16.69 as of June 30, 2020.

Headline financials

Total Revenue

$319M

Previous: $38.7M+722.8%
EPS (adj)

$0.61

Previous: $0.48+27.1%
Net Interest Spread

2.0%

No prior period
Economic Net Interest Spread

2.0%

No prior period
Leverage (incl. TBA)

6.2

No prior period
Free Cash Flow

$40.7M

Previous: -$36.6M+211.3%
Net Income

$40.7M

Previous: -$36.6M+211.3%
Operating Income

$315M

Previous: $35.6M+783.9%
Gross Profit

$319M

Previous: $38.7M+722.8%
Cash & Equivalents

$159M

Previous: $41.8M+280.3%
Total Assets

$3.22B

Previous: $5.49B-41.4%
Stock-Based Comp

$568K

No prior period

Revenue & EPS history

Dynex Capital · Revenue · Quarterly

$319M

Q3 2020+722.8%vs Q3 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Forward guidance

The company's outlook for the balance of 2020 looks favorable given the funding environment and central bank support of the economy and risk assets, notwithstanding the uncertainty of the trajectory of fiscal policy and the medium term economic outlook.

Tailwinds

  • Favorable funding environment
  • Central bank support of the economy
  • Central bank support of risk assets

Headwinds

  • Uncertainty of the trajectory of fiscal policy
  • Medium term economic outlook uncertainty

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

-0.6%

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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