AGNC Investment Corp. (AGNC) reported first-quarter earnings, matching expectations for adjusted earnings per share (EPS) at $0.58, but missing revenue forecasts with adjusted net interest and dollar roll income of $496 million, falling short of the anticipated $567.47 million.
The slight uptick in stock price of 0.54% following the earnings release may indicate a tempered investor response to the revenue shortfall. AGNC’s President and CEO, Peter Federico, attributed the 5.7% economic return on tangible common equity to a favorable macroeconomic environment for fixed income investors.
Bernice Bell, AGNC’s Executive Vice President and Chief Financial Officer, highlighted the company’s strong liquidity position with $5.4 billion of unencumbered cash and Agency MBS. The modest leverage increase to 7.1x at the end of the first quarter from 7.0x in the fourth quarter was also noted.
While AGNC’s earnings aligned with analyst predictions, the revenue miss may prompt further scrutiny of the company’s strategies and operations in the upcoming quarters.
