Annaly Capital Management, Inc. NLY reported third-quarter 2024 adjusted earnings available for distribution (EAD) per average share of 66 cents, which missed the Zacks Consensus Estimate of 67 cents. The reported figure remained unchanged from the year-ago quarter.

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NLY recorded a year-over-year decline in book value per share (BVPS). Nonetheless, the company’s average yield on interest-earning assets improved in the reported quarter.

Inside Annaly’s Headlines

Net interest income (NII) was $13.4 million in the reported quarter. In the prior-year quarter, the company reported a negative $45.3 million in NII.

At the third-quarter end, Annaly had $101.5 billion of total assets, up 8.4% from the prior quarter.

In the reported quarter, the average yield on interest-earning assets (excluding premium amortization adjustment or PAA) was 5.25%, up from the prior-year quarter’s 4.46%. The average economic costs of interest-bearing liabilities were 3.93%, up from 3.28% in the year-ago quarter.

Net interest spread (excluding PAA) of 1.32% in the third quarter fell from 1.18% in the prior-year quarter. Also, the net interest margin (excluding PAA) was 1.52% compared with 1.48% in the third quarter of 2023.

Annaly’s BVPS was $19.54 as of Sept. 30, 2024, down 7.1% from $18.25 reported in the prior-year quarter. At the end of the reported quarter, the company’s economic capital ratio was 14.6%, up from 13.1% in the prior-year quarter.

In the third quarter, the weighted average actual constant prepayment rate was 7.6%, up from 7.3% in the year-ago quarter.

Economic leverage was 5.7X as of Sept. 30, 2024, down from 5.8X sequentially and 6.4X year over year. Annaly generated an annualized EAD return on average equity of 12.95% in the third quarter, which decreased from the prior-year quarter’s 12.96%.

Annaly Capital Management Inc Price, Consensus and EPS Surprise

Annaly Capital Management Inc price-consensus-eps-surprise-chart | Annaly Capital Management Inc Quote

NLY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Release Dates of Annaly’s Peers

Two Harbors Investment Corp. TWO is slated to report third-quarter 2024 results on Oct. 28.

The Zacks Consensus Estimate for TWO’s quarterly earnings has moved significantly upward to 35 cents per share from 11 cents over the past seven days. This indicates a significant rise from the prior-year reported figure.

Starwood Property Trust, Inc. STWD is slated to post third-quarter 2024 results on Nov. 6.

The Zacks Consensus Estimate for STWD’s quarterly earnings has been unchanged at 46 cents per share over the past seven days. This indicates a decline of 6.12% from the prior-year quarter’s reported figure.