NYSE$MFA

MFA Financial Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Announced second quarter 2020 financial results and declared $0.05 common dividend.

MFA Financial's second quarter results were significantly impacted by unusual events and transactions, including gains and losses from asset sales, expenses related to capital raising and forbearance, losses from interest rate swap terminations, and a partial reversal of allowance for credit loss. The company spent the quarter in forbearance, which allowed for more orderly asset liquidation. GAAP book value increased due to earnings, and economic book value also rose due to asset price appreciation on residential whole loans.

  • Residential mortgage investment portfolio decreased by $3.4 billion due to asset sales and portfolio run-off.
  • Assets with an amortized cost basis totaling $3.2 billion were sold for $3.3 billion, resulting in net realized gains of $49.5 million.
  • Net gains for the quarter on residential whole loans measured at fair value through earnings were $20.3 million.
  • Company sold $535.7 million of Agency MBS, realizing a gain of $3.6 million and exited its remaining Agency MBS and the substantial majority of its Legacy Non-Agency MBS.

Headline financials

Total Revenue

$75.7M

Previous: $117M-35.1%
EPS (adj)

$0.76

Previous: $0.80-5.0%
Quarterly common dividend

$0.05

No prior period
Yield on residential loans

5.2%

No prior period
Capital Expenditures

-$837K

Previous: -$10.6M+92.1%
Free Cash Flow

$97.4M

Previous: $82.5M+18.1%
Net Income

$96.6M

Previous: $93M+3.8%
Operating Income

$706K

Previous: $102M-99.3%
Gross Profit

$65.1M

Previous: $117M-44.2%
Cash & Equivalents

$666M

Previous: $88.7M+651.4%
Total Assets

$7.57B

Previous: $13.2B-42.7%
Stock-Based Comp

$1.55M

Previous: $2.44M-36.3%

Revenue & EPS history

MFA Financial · Revenue · Quarterly

$75.7M

Q2 2020-35.1%vs Q2 2019
Beat estimate in 1 of 16 quarters(6%)
ActualEstimate

Revenue by segment

MFA Financial · $125M total across 1 segment · Q4 2022

  • Residential whole loans
    $125M

Forward guidance

MFA Financial does not anticipate incurring any significant additional expenses related to exiting forbearance or refinancing activity going forward.

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 2020

Historical avgQ2 2020

-0.2%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-0.5%

Avg return

30 days after

49%

33 / 68 earnings

Positive

+7.6%

Q2 2024

Best reaction

-10.1%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.8%-2.5%-8.8%
Q4 2025+2.4%-0.2%-4.4%
Q3 2025+1.3%-0.2%+6.2%
Q1 2025-5.3%-4.4%-4.3%
Q4 2024+0.2%+0.3%+5.5%
Q3 2024-6.2%-6.1%-10.8%
Q2 2024+7.6%+7.5%+13.2%
Q1 2024-2.7%-1.0%-1.7%
Q4 2023+2.8%+0.1%+6.4%
Q3 2023-0.3%-0.6%+11.9%
Q2 2023-4.0%-3.0%-2.7%
Q1 2023+1.1%+1.1%+9.3%
Q4 2022+1.7%+0.6%-14.3%
Q3 2022+4.7%+5.0%+14.6%
Q2 2022-4.9%-5.1%-15.8%
Q1 2022-1.2%-8.8%-7.2%
Q4 2021-4.4%-4.9%-4.7%
Q3 2021+2.0%+1.8%-0.7%
Q2 2021+2.4%+2.6%+5.1%
Q1 2021-1.6%-2.9%+0.5%
Q4 2020+0.0%-3.8%-1.9%
Q3 2020+5.0%+7.8%+33.7%
Q2 2020+2.5%+8.4%-1.8%
Q1 2020-10.1%-11.5%-9.4%
Q4 2019+0.0%-4.1%-54.4%
Q3 2019+1.9%+2.3%+1.5%
Q2 2019+4.8%+3.8%+2.3%
Q1 2019-2.1%-0.7%-3.9%
Q4 2018+0.3%+0.1%-1.2%
Q3 2018+3.8%+4.2%+4.7%
Q2 2018-4.6%-7.0%-4.7%
Q1 2018-0.9%-0.1%+1.8%
Q4 2017+4.2%+2.2%+7.3%
Q3 2017-4.1%-6.8%-3.5%
Q2 2017+1.8%+2.1%+2.7%
Q1 2017-4.0%-3.5%+1.0%
Q4 2016-0.7%-0.2%+0.6%
Q3 2016+2.6%+3.5%+6.4%
Q2 2016+3.2%+3.7%+4.0%
Q1 2016+2.5%
Q4 2015-0.8%
Q3 2015-1.4%
Q2 2015-0.7%
Q1 2015-1.7%
Q4 2014+1.7%
Q3 2014-2.0%
Q2 2014-0.5%
Q1 2014+0.1%
Q4 2013+1.9%
Q3 2013-0.9%
Q2 2013-0.9%
Q1 2013+0.4%
Q4 2012+1.2%
Q3 2012-3.6%
Q2 2012-3.9%
Q1 2012+2.9%
Q4 2011-0.9%
Q3 2011+2.5%
Q2 2011+0.3%
Q1 2010+1.6%
Q1 2011+0.2%
Q4 2008-1.4%
Q4 2009-1.4%
Q4 2010-1.4%
Q3 2010+1.6%
Q3 2009+1.6%
Q2 2009-1.1%
Q2 2010-1.1%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro