NYSE$NLY

Annaly Capital Management Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported financial results for the quarter ended September 30, 2022.

Annaly Capital Management reported a GAAP net loss of ($0.70) per average common share for the quarter, with earnings available for distribution (EAD) of $1.06 per average common share. The company's total assets increased to $86.2 billion, and the Agency Portfolio grew by 4.5% to $78.2 billion. Annaly was also added to the S&P MidCap 400 Index.

  • GAAP net loss of ($0.70) per average common share for the quarter.
  • Earnings available for distribution (EAD) of $1.06 per average common share for the quarter; dividend coverage of 120%.
  • Total assets of $86.2 billion, up from $82.3 billion in the prior quarter.
  • Annaly's Agency Portfolio increased by 4.5% to $78.2 billion in assets at the end of the third quarter.

Headline financials

Total Revenue

-$795M

Previous: $425M-287.0%
EPS (adj)

$1.06

Previous: $1.12-5.4%
Net Interest Margin

1.4%

Previous: 2.0%-29.4%
Yield on Assets

3.5%

Previous: 2.3%+51.5%
GAAP Cost of Liabilities

2.4%

Previous: 0.3%+643.8%
Net Interest Spread

1.1%

Previous: 2.0%-44.7%
Experienced CPR

9.8%

Previous: 23.1%-57.6%
Long-Term CPR

7.6%

Previous: 12.7%-40.2%
Economic Leverage Ratio

7.1

No prior period
Capital Expenditures

$0.00

Previous: -$1.82M+100.0%
Free Cash Flow

-$275M

Previous: $517M-153.2%
Net Income

-$275M

Previous: $519M-153.0%
Operating Income

-$838M

Previous: $379M-320.9%
Gross Profit

-$796M

Previous: $425M-287.4%
Cash & Equivalents

$1.47B

Previous: $1.05B+40.1%
Total Assets

$85.4B

Previous: $76.7B+11.4%

Revenue & EPS history

Annaly · Revenue · Quarterly

-$795M

Q3 2022-287%vs Q3 2021
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Annaly · $76B total across 3 segments · Q3 2020

  • Agency MBS
    $74.9B
  • Non-Agency MBS
    $718M
  • CRT Securities
    $412M

Forward guidance

The company expects to maintain its defensive positioning due to the difficult operating environment, but views asset valuations as attractive and is prepared to take advantage of opportunities when technical factors improve.

Tailwinds

  • Strong capital base.
  • Disciplined portfolio and risk management.
  • Deep financing sources.
  • Attractive asset valuations.
  • Poised to take advantage of opportunities when technical factors improve.

Headwinds

  • Elevated market volatility.
  • Pressure on book value due to spread widening in Agency MBS.
  • Significant moves in interest rates.
  • Difficult operating environment.
  • Sustained macroeconomic 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 2022

Historical avgQ3 2022

+0.1%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+0.1%

Avg return

30 days after

45%

33 / 73 earnings

Positive

+5.9%

Q2 2022

Best reaction

-6.7%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.6%-0.7%-3.1%
Q4 2025-1.1%-5.9%-4.2%
Q3 2025-1.9%-1.1%+3.2%
Q2 2025+0.0%+0.4%+5.6%
Q1 2025-0.9%-3.0%-3.3%
Q4 2024+3.6%+3.7%+11.1%
Q3 2024+0.3%-2.3%+0.9%
Q2 2024-3.3%-1.7%-1.5%
Q1 2024+0.3%+2.4%+4.5%
Q4 2023-0.5%+0.9%+3.9%
Q3 2023-3.8%-3.8%+12.0%
Q2 2023-2.5%-2.4%-4.2%
Q1 2023+4.0%+1.8%-2.8%
Q4 2022-6.7%-6.0%-21.1%
Q3 2022+2.4%+4.9%+22.5%
Q2 2022+5.9%+7.6%+2.3%
Q1 2022+4.6%+2.8%+4.9%
Q4 2021-0.9%-5.1%-6.5%
Q3 2021-1.4%-0.8%-3.9%
Q2 2021+1.8%-0.6%+3.2%
Q1 2021+1.0%+2.2%+4.0%
Q4 2020-1.2%-0.9%+2.1%
Q3 2020-0.1%+1.8%+14.8%
Q2 2020+2.5%+2.6%+2.2%
Q1 2020-0.2%-2.2%-1.6%
Q4 2019+3.4%+4.3%-30.9%
Q3 2019+0.4%+1.3%+4.4%
Q2 2019-2.9%-4.7%-14.2%
Q1 2019-3.3%-4.9%-12.7%
Q4 2018-1.8%-2.5%-1.2%
Q3 2018-0.6%-0.9%+1.3%
Q2 2018-1.2%-2.0%-0.9%
Q1 2018-1.3%+1.2%+1.0%
Q4 2017+1.8%+2.2%+1.6%
Q3 2017-1.5%-3.7%+3.0%
Q2 2017+0.6%+0.2%+3.1%
Q1 2017-1.9%-2.1%+2.9%
Q4 2016+3.3%+3.4%+5.2%
Q3 2016-0.2%+0.3%-2.7%
Q2 2016+0.8%+1.3%-0.4%
Q1 2016+3.1%
Q4 2015+1.2%
Q3 2015-3.5%
Q2 2015+1.3%
Q1 2015+0.2%
Q4 2014-0.7%
Q3 2014-0.6%
Q2 2014+1.7%
Q1 2014-1.0%
Q4 2013+3.5%
Q3 2013-4.0%
Q2 2013+4.5%
Q1 2013-2.8%
Q4 2012-0.9%
Q3 2012-3.8%
Q2 2012-1.2%
Q1 2012+1.3%
Q4 2011-0.5%
Q3 2011-0.7%
Q2 2011+1.9%
Q1 2011-0.5%
Q4 2010+1.2%
Q3 2010-0.7%
Q2 2010+2.1%
Q1 2009-2.5%
Q1 2010+1.4%
Q4 2007+2.5%
Q4 2009+2.5%
Q3 2008+1.3%
Q3 2009+1.3%
Q4 2008-0.8%
Q2 2008-0.8%
Q2 2009-0.8%

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