NYSE$NLY

Annaly Capital Management Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Annaly's financial performance was announced for the quarter and year ended December 31, 2024.

Annaly Capital Management reported a GAAP net income of $0.78 per average common share and earnings available for distribution (EAD) of $0.72 per average common share for Q4 2024. The company's economic return was 1.3% for the quarter and 11.9% for the full year. Annaly's Agency portfolio decreased modestly by 3%, while the Residential Credit and MSR portfolios increased by 8% and 17%, respectively.

  • GAAP net income of $0.78 per average common share for the quarter.
  • Earnings available for distribution (EAD) of $0.72 per average common share for the quarter.
  • Economic return of 1.3% for the fourth quarter and 11.9% for the full year 2024.
  • Net interest margin increased 69 basis points quarter-over-quarter to 0.75% and net interest margin (excluding PAA) increased 19 basis points quarter-over-quarter to 1.71%.

Headline financials

Total Revenue

$1.34B

Previous: $990M+35.2%
EPS (adj)

$0.72

Previous: $0.68+5.9%
Net Interest Margin

0.8%

Previous: -0.3%+400.0%
GAAP Cost of Liabilities

5.0%

Previous: 5.4%-7.6%
Net Interest Spread

0.4%

Previous: -0.8%+148.8%
Experienced CPR

8.7%

Previous: 6.3%+38.1%
Long-Term CPR

8.6%

Previous: 9.4%-8.5%
Net Income

$473M

Previous: -$391M+220.9%
Operating Income

$483M

Previous: -$390M+224.1%

Revenue & EPS history

Annaly · Revenue · Quarterly

$1.34B

Q4 2024+35.2%vs Q4 2023
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

Annaly's outlook for 2025 is optimistic, citing favorable dynamics across each of its businesses. Agency MBS continues to provide attractive returns, while the Residential Credit and MSR portfolios are well-positioned for further growth.

Tailwinds

  • Agency MBS continues to provide attractive returns.
  • Improved supply and demand picture in the Agency MBS sector.
  • Decreasing financing costs.
  • A steeper yield curve.
  • Residential Credit and MSR portfolios are well-positioned for further growth given Annaly's deep capital base and strategic relationships with originators.

Headwinds

  • Continued volatility.
  • Elevated policy uncertainty.
  • Changes in interest rates.
  • Changes in the yield curve.
  • Changes in prepayment rates.

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 2024

Historical avgQ4 2024

+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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