NYSE$IVR

Invesco Mortgage Capital Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Invesco Mortgage Capital Inc. reported its financial results for the fourth quarter ended December 31, 2024, showing a net loss per common share and a decrease in book value per common share.

Invesco Mortgage Capital Inc. reported a net loss of $0.09 per common share for Q4 2024, a significant decline from a net income of $0.63 in Q3 2024. The company's book value per common share decreased by 4.8% to $8.92, resulting in an economic return of (0.5)% for the quarter. Despite the challenges, the company improved its capital structure through the redemption of Series B Preferred Stock.

  • Net loss per common share was $0.09 in Q4 2024, a decrease from net income of $0.63 in Q3 2024.
  • Book value per common share decreased by 4.8% to $8.92 as of December 31, 2024.
  • Economic return for the quarter was (0.5)%, down from 5.4% in Q3 2024.
  • The company improved its capital structure by redeeming Series B Preferred Stock, increasing its debt-to-equity ratio to 6.7x.

Headline financials

Total Revenue

$76.1M

Previous: -$188M+140.5%
EPS (adj)

$0.53

Previous: $0.95-44.2%
Average Earning Assets

$5.44B

No prior period
Average Borrowings

$4.87B

No prior period
Average Total Stockholders' Equity

$798M

No prior period
Total Interest Income

$76.1M

No prior period
Total Interest Expense

$62.4M

No prior period
Net Interest Income

$13.7M

No prior period
Total Expenses

$4.78M

No prior period
Net Income Attributable to Common Stockholders

-$5.47M

No prior period
Average Earning Asset Yields

5.6%

No prior period
Average Cost of Funds

5.1%

No prior period
Average Net Interest Rate Margin

0.5%

No prior period
Period-End Weighted Average Asset Yields

5.4%

No prior period
Period-End Weighted Average Cost of Funds

4.8%

No prior period
Period-End Weighted Average Net Interest Rate Margin

0.6%

No prior period
Book Value Per Common Share

$8.92

No prior period
Earnings Per Common Share (Basic)

-$0.09

No prior period
Debt-to-Equity Ratio

6.7

Previous: 5.7+17.5%
Earnings Available for Distribution

$32.3M

No prior period
Effective Interest Expense

$30.1M

No prior period
Effective Net Interest Income

$46M

No prior period
Effective Cost of Funds

2.5%

No prior period
Effective Interest Rate Margin

3.1%

Previous: 5.0%-37.8%
Earnings Available for Distribution Per Common Share

$0.53

No prior period
Economic Debt-to-Equity Ratio

6.7

No prior period
Capital Expenditures

$0.00

Previous: $0.00
Net Income

$3.51M

Previous: $27.2M-87.1%
Operating Income

$13.7M

Previous: $27.2M-49.7%

Revenue & EPS history

Invesco Mortgage Capital · Revenue · Quarterly

$76.1M

Q4 2024-140.5%vs Q4 2023
Beat estimate in 3 of 14 quarters(21%)
ActualEstimate

Forward guidance

The company remains cautious on Agency RMBS due to potential interest rate volatility but has a favorable long-term outlook for the sector. They anticipate increased demand for Agency CMBS.

Tailwinds

  • Long-term outlook for Agency RMBS is favorable due to attractive valuations and expected decline in interest rate volatility.
  • Anticipate a steeper yield curve, which could benefit the company.
  • Expect a gradual increase in Agency CMBS new issuance.
  • Robust investor demand for Agency CMBS due to prepayment protection and attractive risk-adjusted return profiles.
  • Estimated book value per common share as of February 14, 2025, is between $8.90 and $9.26.

Headwinds

  • Shifting expectations for monetary and fiscal policy may result in elevated interest rate volatility.
  • Elevated interest rate volatility could reduce investor demand for Agency RMBS.
  • Interest rate volatility negatively impacted effective net interest income for the quarter.
  • Recognized a one-time charge associated with the redemption of Series B Preferred Stock.
  • Diversified interest rate hedges, reducing exposure to changes in swap spreads, negatively impacted effective net interest income in the short term.

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 2024

Historical avgQ4 2024

-0.1%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-2.8%

Avg return

30 days after

46%

30 / 65 earnings

Positive

+13.3%

Q3 2020

Best reaction

-8.4%

Q3 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%+1.7%-2.7%
Q4 2025-3.4%-0.1%-5.3%
Q3 2025+0.3%+0.4%+9.2%
Q2 2025-0.4%-0.4%-1.7%
Q1 2025+1.8%+3.8%+3.0%
Q4 2024-0.9%-1.3%-3.1%
Q3 2024-1.0%+3.5%+3.7%
Q2 2024+1.4%-0.5%+0.1%
Q1 2024+1.4%+1.4%+0.4%
Q4 2023-0.1%+2.1%+9.2%
Q3 2023-3.6%-4.4%+2.8%
Q2 2023-2.2%-1.9%-3.4%
Q1 2023+6.6%+4.6%+3.7%
Q4 2022-4.2%-6.1%-23.3%
Q3 2022-2.2%+2.0%+14.3%
Q2 2022+2.0%+1.9%-7.9%
Q1 2022-8.1%-9.7%-5.4%
Q4 2021-6.3%-11.4%-13.7%
Q3 2021+1.9%+2.8%-7.8%
Q2 2021-6.7%-7.9%-9.6%
Q1 2021-5.2%-7.3%-12.3%
Q4 2020+3.2%+5.1%+4.9%
Q3 2020+13.3%+11.8%+17.8%
Q2 2020+3.8%+3.8%-8.9%
Q1 2020-3.7%-15.4%-21.9%
Q4 2019+0.5%-0.8%-69.4%
Q3 2019+3.5%+2.9%+5.1%
Q2 2019+2.6%+1.7%-7.5%
Q1 2019-0.2%-0.7%-1.6%
Q4 2018-0.4%+0.0%+0.7%
Q3 2018-0.8%-0.1%+2.1%
Q2 2018-1.4%-1.9%+1.3%
Q1 2018+2.3%-0.1%+1.6%
Q4 2017-2.1%-1.3%-0.1%
Q3 2017-1.5%-1.7%+7.5%
Q2 2017+1.9%+0.8%+0.5%
Q1 2017+0.4%-2.9%+2.7%
Q4 2016-0.2%-1.4%-2.6%
Q3 2016+0.7%+0.1%-2.1%
Q2 2016+4.7%+5.7%+7.7%
Q1 2016+4.4%
Q4 2015+5.1%
Q3 2015+2.3%
Q2 2015+0.3%
Q1 2015+1.0%
Q4 2014+3.4%
Q3 2014-2.4%
Q2 2014+0.5%
Q1 2014+0.3%
Q4 2013-1.8%
Q3 2013-8.4%
Q2 2013-3.3%
Q1 2013-3.4%
Q4 2012-1.1%
Q4 2011-1.3%
Q3 2012+1.3%
Q2 2012-2.5%
Q1 2012-0.3%
Q3 2011-1.0%
Q2 2011+4.8%
Q1 2011+0.5%
Q4 2010+0.6%
Q3 2010-1.5%
Q2 2010-0.6%
Q1 2010-1.0%

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