NYSE$NLY

Annaly Capital Management Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Announced financial results for the quarter and year ended December 31, 2021.

Annaly Capital Management reported GAAP net income of $0.27 per average common share and earnings available for distribution (EAD) of $0.28 per average common share for Q4 2021. The company's capital allocation to credit businesses increased, and its MSR platform grew by 12%.

  • GAAP net income of $0.27 per average common share for the quarter.
  • Earnings available for distribution (“EAD”) of $0.28 per average common share for the quarter with dividend coverage of +125%.
  • Capital allocation to credit businesses increased by approximately 200 basis points to 32% during the quarter driven by $2.2 billion of credit originations.
  • Annaly's Mortgage Servicing Rights ("MSR") platform grew by 12% in the fourth quarter and successfully executed on its strategy to finish the year as the fifth largest buyer of bulk MSR.

Headline financials

Total Revenue

$423M

Previous: $527M-19.8%
EPS (adj)

$1.12

Previous: $1.20-6.7%
Net Interest Margin

2.0%

Previous: 2.1%-7.9%
Yield on Assets

2.3%

Previous: 2.6%-11.5%
GAAP Cost of Liabilities

0.4%

Previous: 0.5%-25.5%
Net Interest Spread

1.9%

Previous: 2.1%-8.1%
Experienced CPR

21.4%

Previous: 24.7%-13.4%
Long-Term CPR

12.7%

Previous: 16.4%-22.6%
Economic Leverage Ratio

5.7

Previous: 6.2-8.1%
Net Income

$418M

Previous: $879M-52.4%
Cash & Equivalents

$1.34B

Previous: $1.24B+7.9%
Total Assets

$76.8B

Previous: $88.5B-13.2%

Revenue & EPS history

Annaly · Revenue · Quarterly

$423M

Q4 2021-19.8%vs Q4 2020
Beat estimate in 6 of 16 quarters(38%)
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

Annaly's portfolio is well prepared for periods of turbulence with historically low leverage, a conservatively hedged portfolio and disciplined asset allocation across the spectrum of housing finance. Despite the volatility, the company is encouraged by improving investment returns in Agency MBS and are poised to capitalize on attractive opportunities as they arise.

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 2021

Historical avgQ4 2021

+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%

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