NYSE$NLY
Annaly Capital Management Inc · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Annaly's financial performance reflected challenges in fixed income markets due to rising global yields, while strategic portfolio management and hedging helped navigate volatility.
Annaly Capital Management reported a GAAP net loss of ($1.21) per average common share and earnings available for distribution (EAD) of $0.66 per average common share for Q3 2023. The economic return was (8.8%) for the quarter, with a book value per common share of $18.25. The company maintained a total portfolio of $76.2 billion, including a $68.5 billion Agency portfolio, and actively managed its hedge position, increasing the hedge ratio from 105% to 115%.
- GAAP net loss was ($1.21) per average common share, while earnings available for distribution (EAD) reached $0.66 per average common share.
- The economic return for the third quarter was (8.8%), and the book value per common share stood at $18.25.
- Total portfolio amounted to $76.2 billion, with $68.5 billion allocated to the highly liquid Agency portfolio.
- The hedge ratio increased from 105% to 115% through active management of portfolio duration by adding longer-dated hedges.
Headline financials
Revenue & EPS history
Annaly · Revenue · Quarterly
$402M
Revenue by segment
Annaly · $76B total across 3 segments · Q3 2020
- Agency MBS$74.9B—98.5%
- Non-Agency MBS$718M—0.9%
- CRT Securities$412M—0.5%
Forward guidance
While risks to the operating environment persist, Annaly expects to benefit from attractive investment returns across its three businesses and a supportive financing environment.
Tailwinds
- Historically wide Agency MBS spreads provide ample compensation for above average volatility and technical challenges.
- Residential Credit business continues to grow, bolstered by strong performance from the whole loan correspondent channel.
- MSR portfolio is strengthened by stable cash flows and rising yields supporting valuations.
- Company entered the quarter with lower leverage.
- Company entered the quarter with substantial liquidity.
Headwinds
- Fixed income markets faced challenges due to a rapid rise in global yields.
- Agency MBS spreads widened amidst ongoing supply.
- MBS runoff from Federal Reserve and bank portfolios contributed to spread widening.
- Elevated volatility impacted market conditions.
- Higher rates and spreads weighed on book value and economic return for the quarter.
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 2023
+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
| Quarter | Report date | Reaction (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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