NYSE$MFA

MFA Financial Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

MFA Financial's third quarter results reflected a recovery with strong housing metrics and tightening credit spreads, leading to earnings and book value growth. The company also repaid a $500 million loan and announced a $250 million stock repurchase program.

MFA Financial reported improved third quarter results driven by strong housing metrics and tighter credit spreads. The company made progress on initiatives including securitizations and paying off a senior secured term loan. A common stock dividend of $0.05 was paid on October 30th.

  • Economic book value increased by over 10% during the quarter.
  • Dividends on Series B and Series C Preferred Stock were reinstated and normal dividend payments resumed.
  • Two Non-QM securitizations aggregating over $960 million were completed, lowering financing costs.
  • The $500 million senior secured term loan was fully paid off.

Headline financials

Total Revenue

$10.1M

Previous: $119M-91.5%
EPS (adj)

$0.68

Previous: $0.80-15.0%
Capital Expenditures

-$1.43M

Previous: -$15.7M+90.9%
Free Cash Flow

$85.8M

Previous: $79.9M+7.3%
Net Income

$87.2M

Previous: $95.6M-8.8%
Operating Income

-$30.3M

Previous: $106M-128.5%
Gross Profit

-$19.9M

Previous: $119M-116.7%
Cash & Equivalents

$884M

Previous: $154M+473.4%
Total Assets

$7.48B

Previous: $13.1B-42.9%

Revenue & EPS history

MFA Financial · Revenue · Quarterly

$10.1M

Q3 2020-91.5%vs Q3 2019
Beat estimate in 2 of 16 quarters(13%)
ActualEstimate

Revenue by segment

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

  • Residential whole loans
    $125M

Forward guidance

MFA Financial expects positive impacts on results in Q4 2020 and into 2021 from completed initiatives.

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

-0.2%

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%

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