Dynex Capital ( NYSE: DX ) Q3 earnings dropped from the previous quarter, hurt by interest rate volatility and spread widening, pushing its book value per share down 15%, the mortgage REIT said Monday.
Q3 adjusted EPS of $0.24 trailing the average analyst estimate of $0.31, fell from $0.40 in Q2.
"The third quarter of 2022, and in particular September, continued to be defined by extreme interest rate volatility and spread widening driven by increasing interest rates domestically and geopolitical factors," said CEO Byron L. Boston. "While we experienced a decline in book value during the quarter related to this volatility and spread widening, our liquidity remains solid."
Net interest income of $7.12M fell from $14.1M in Q2 and from $15.7M in Q1. Adjusted net interest income fell to $23.4M in Q3 from $25.1M in the prior quarter.
Q3 adjusted net interest spread of 1.12% vs. 1.84% in the prior quarter.
Book value declined to $14.23 per share at Sept. 30, 2022 from $16.79 at June 30.
Total economic loss of $2.17 per share, or 12.9% of beginning book value, was comprised of a decline in book value per common share -$2.56, partially offset by dividends declared of $0.39 per share in Q3.
Cash and cash equivalents were $260.4M at Sept. 30 vs. $325.7M at June 30.
Dynex ( DX ) shares have gained 0.9% in Monday premarket trading.
Conference call at 10:00 AM ET.
Earlier, Dynex Capital ( DX ) non-GAAP EPS of $0.24 misses by $0.07, net interest income of $7.12M
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Dynex Capital Q3 earnings trail consensus as volatility pushes down book value