Mortgage finance REIT Annaly Capital Management (NYSE: NLY) will be reporting earnings this Wednesday afternoon. Here’s what investors should know.
Annaly Capital Management beat analysts’ revenue expectations by 7.2% last quarter, reporting revenues of $885.6 million, up 637% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ revenue estimates but a significant miss of analysts’ net interest income estimates.
Is Annaly Capital Management a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Annaly Capital Management’s revenue to grow 38.4% year on year to $729.8 million, slowing from the 250% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.73 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Annaly Capital Management has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Annaly Capital Management’s peers in the banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Northwest Bancshares delivered year-on-year revenue growth of 19.8%, beating analysts’ expectations by 3.7%, and WaFd Bank reported revenues up 7.6%, falling short of estimates by 2.6%. WaFd Bank traded down 4% following the results.
Read our full analysis of Northwest Bancshares’s results here and WaFd Bank’s results here.
There has been positive sentiment among investors in the banks segment, with share prices up 3.1% on average over the last month. Annaly Capital Management is up 3.2% during the same time and is heading into earnings with an average analyst price target of $23.52 (compared to the current share price of $23.77).
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