Post-Earnings Briefing - Annaly Capital Management

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Aug 14, 2014, 09:40 ET from Investor-Edge

LONDON, August 14, 2014 /PRNewswire/ -- has issued free post-earnings report and analysis on Annaly Capital Management Inc. (NYSE: NLY) after the company featured in the headlines on Wednesday, August 06, 2014, with its Q2 2014 financial results. The company's GAAP net loss per share widened 14 cents on Q-o-Q basis in Q2 2014. Meanwhile, its core earnings per average common share improved 7 cents sequentially during the reported period. Our free coverage report can be accessed at:

Earnings Overview  

For the second quarter of 2014, the Company's annualized yield on average interest earning assets came in at 3.20%, compared with 3.21% in the previous quarter and 2.54% in the year-ago quarter. Meanwhile, the annualized interest rate spread came in at 1.26% in Q2 2014, compared with 0.90% in the preceding quarter and 1.01% in the year-ago quarter. Annaly Capital Management Inc.'s net capital ratio stood at 15.4% in the second quarter 2014, which is above 13.3% reported in the prior year period, but stood in line with the previous quarter. During the quarter, the company's total other losses stood at $842.03 million, primarily attributable to higher net losses on interest rate swaps, a significant portion of which were realized upon termination of interest rate swap with shorter remaining maturities. Meanwhile, Annaly Capital Management Inc. had reported total other losses of $682.90 million in Q1 2014 and total other income of $1,154.76 million in the year-ago period. The free research on NLY can be downloaded as in PDF format at:

The mortgage REIT's leverage stood at 5.3:1 in the second quarter 2014, compared with 5.2:1 in the preceding quarter and 6.2:1 in the second quarter of 2013. During the quarter, book value per common share was recorded at $13.23, which is 93 cents above $12.30 reported in the prior year quarter and 20 cents above $13.03 in the prior year period. Meanwhile, net interest margin also improved to 1.57% in Q2 2014 from 1.32% in the previous quarter and 1.20% in the prior year period. The company offered an annualized core return on average equity of 9.24% in the quarter under review, compared with 7.68% in the prior quarter and 8.24% in the year-ago period. Sign up and read the free analyst's notes on NLY at:

Wellington J. Denahan, Chairman and Chief Executive Officer of Annaly Capital Management Inc., welcomed the opportunities created by continued reduction of monetary policy influences on the markets. The Chairman further asserted that the company has the ability to sustain attractive risk-adjusted returns in the upcoming quarters.

During the quarter, the New York-based bank reported GAAP net loss available (related) to common stockholders of $335.51 million, or $0.37 loss per common share as compared to GAAP net loss available (related) to common stockholders of $221.34 million or $0.23 loss per common share in the preceding quarter. Meanwhile, the company's GAAP net income available (related) to common stockholders was $16,20.22 million or $1.71 per common share in Q2 2013. Annaly Capital Management Inc. recorded core earnings of $300.43 million, or $0.30 per average common share in Q2 2014, compared with $239.74 million or $0.23 per average common share in the previous quarter and $294.16 million, or $0.29 per average common share in the year-ago quarter. Analysts at Bloomberg expected GAAP net income of $181.27 million, or $0.16 per average common share on core earnings of $267.87 million, or $0.26 per average common share. Visit Investor-Edge and access the latest research on NLY at:

Stock Performance 

Annaly Capital Management Inc.'s shares gained 1.60% to close the session on Thursday, August 07, 2014, at $11.44. On Wednesday, August 13, 2014, Annaly Capital Management Inc.'s shares further edged 0.17% higher to end the day at $11.51, after vacillating between $11.48 and $11.57. A total of 5.45 million shares were traded, which was below its three months average volume of 7.08 million shares. Annaly Capital Management Inc.'s shares have advanced 0.52% in the previous three trading sessions, 3.04% in the last one month, and 15.45% on YTD basis. The company's shares are trading above their 50-day and 200-day moving averages of $11.39 and $11.03, respectively. The stock traded at a PE ratio of 18.87 and has a Relative Strength Index (RSI) of 59.60.

Sneak Peek to Corporate Insider Trading 

On August 08, 2014, R. Nicholas Singh, Chief Legal Officer of Annaly Capital Management Inc. bought 122,784 shares worth $1.41 million at an average price of $11.46. Complimentary in-depth research on NLY is available at:


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