- Dynex Capital ( NYSE: DX ) shares are sliding 3.6% in Monday morning trading after its Q2 earnings missed Wall Street expectations, as wider spreads in agency residential mortgage backed securities hindered its total economic return.
- “Although our total economic return has shown a modest decline of (2.3)% year-to-date, we continue to outpace industry indices and the broader fixed income sector," said CEO Byron L. Boston.
- Adjusted EPS of $0.40 in Q2 fell short of the average analyst estimate of $0.42 and decreased from $0.44 in the first quarter.
- Net interest income also slid to $14.1M at June 30 from $15.7M at March 31, mostly due to the Federal Reserve's interest-rate hikes impacting the REIT's cost of financing its investments.
- Q2 net interest spread of 1.50% vs. 1.86% in Q1.
- Q2 book value came in at $16.79 per common share, down from $18.24 in Q1.
- Conference call at 10:00 a.m. ET.
- Earlier, Dynex Capital negative total economic return was $1.06 per share in Q2 .
For further details see:
Dynex Capital Q2 earnings miss consensus on wider agency RMBS spreads